The paper "Long Term Prospects of the US-Mexican NAFTA Relationship" is an outstanding example of a marketing assignment. Firstly, the positive aspect that shows that there are several treaties has been concluded between the two nations bilaterally through NAFTA, along with the latest attempt to tear down barriers to capital mobility even as territorial demarcations were tightened for workers. NAFTA tried to facilitate trade and open markets but what about the expansion of opportunities for capital investment. Added to this is the issue of Maquiladora factories. There are instances where the negative aspect is still strong.
In the Maquiladora factories, cheaper production of materials for the United States and Canada has led to exploitation, sexual abuse, and oppression for young Mexican women. NAFTA’ s tax advantage still gives hope for a better perspective (Kelly, 2007). China has got every chance to get into this particular tug of having cheaper production of materials from Mexico and can intervene between its relations with the US. The economic cost of production of China is comparatively low and that gives Mexico a competition. Being a country in the developing country list the low cost in China is obviously creating a channel away from the manufacturing processes.
The added advantage is its approach to the communistic side of global politics, even though Mexico has got greater transparency. China is growing devastatingly in the volume of its trade in the past decade. The low cost has been paving way for more and more foreign investors in the country. It was in 2005, the United States' NAFTA partners, Canada and Mexico, contributed about 30 percent of the overall value of U. S.
international merchandise trade. On the contrary, the three largest economies in East Asia - China, Japan, and Korea contributed about 21.9 percent (Boske, 2006). It is an estimation that seems to be growing in the case of China. Though China is at its foremost stage of occupying the market between Mexico and the US, yet its political and strategical abilities are going to make a firm impression. The factors related to the market proximity will not diminish as the country has got a lower cost of production than any other developed country.
Being a communist country the laborers also have the opportunity towards lucrative tax advantages. As compared to Mexico the Chinese employees are having less access to their bonuses and are subject to a more laborious routine. The wages are comparatively lower than any other developed country and the investors are served with lower labor charges. It has got special economical and political independence for foreign firms. With an amalgamation of all these features, the market proximity stands still and prospects for future occupation get rigid. There is every possibility that China will become a less complex and risky business domain in the global scenario.
The United States, on the other hand, is becoming biased in adopting its business policies with China. Due to the lower cost of labor, more and more foreign investors are getting into the markets of China and as a result of the sustainability of relationships in terms of business, between Mexico and the US, are at the toss.
Arbelaez, Harvey & Milman, Claudio (2007), "The New Business Environment of Latin America and the Caribbean", International Journal of Public Administration.
Boske, Leigh B; Global Trends & Market Shifts: Texas, China, and Mexico, Publication: Texas Business Review, 2006, http://www.allbusiness.com/legal/international-law-foreign-investment-finance/4086927-1.html[accessed on 2008-05-07]
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Kelly, Patricia & Massey, Douglas (2007), "Borders for Whom? The Role of NAFTA in Mexico-U.S. Migration", The ANNALS of the American Academy of Political Science
Mumme, Stephen (2007), "Trade Integration, Neoliberal Reform and Environmental Protection in Mexico: Lessons for the Americas", Latin American Perspectives