Saturday, March 26, 2016

Blog Discussion Group Seven

Blog post due at 11:55pm on March 29 and comment due at 11:55pm on April 1.

Mexico

  • To what extent are the elitist and hierarchical tendencies of Mexican politics found in liberal democracies?
  • What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?
  • Mexican corporatism brings various social actors (e.g., labor, business professionals) into an officially sanctioned ruling coalition.  While guaranteeing certain privileges for these groups (e.g., job security for unionized labor and subsides for businesses), it also limits such freedoms as choosing when to strike or how to allocate capital.  Discuss the advantages and disadvantages of such arrangements.

31 comments:

  1. Was bringing Mexico into a free-trade agreement with the United States and Canada a good or bad idea for the three countries? why?

    Overall I think that bringing Mexico into the free-trade agreement with the United States and Canada was a bad idea in the sense that Mexican workers have benefited alot less than expected. When starting out NAFTA made one of it's aims for the US to invest in Mexico. This "investment" has taken place near the US-Mexico border with setting up small factories where Mexican workers provide cheap labor for producing American goods. This idea has not worked out as expected in aiming to increase the size of Mexico's middle class due to the labor in Asia being significantly cheaper and more convenient

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    1. But what about other countries that have workers coming to the United Sates and doesnt leave at all, I think that is happening as well, I think we should try to trade with other countries that are our allies. Just like when other countries ask to borrow our money and military whats the difference in my opinion. I think the NAFTA was a very good idea and again we must look into another agreement with other countries, but bottom line make them pay where and when they need to, not just allow them to say I promise to pay and this should be up to the Secretary of State.

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  2. Was bringing Mexico into a free-trade agreement with the United States and Canada a good or bad idea for the three countries? Why?
    It has been both good and bad, depending on which industry is your livelihood dependent upon. Mexico's currency has regained some value since the agreement and it has created more jobs in their country. While some may argue that it is taking away jobs from the US, those earning a living in Mexico are now saving their money and spending it on US imports thereby, placing that money right back into our economy. So while this agreement reduced manufacturing jobs for the US, and agricultural jobs for Mexico, the trade benefits for each country outweighs those negatives. On the flip side, those working in the faltering industries are now faced with learning a new job trade. Canada has seen great benefits to this agreement being the major exporter of goods to the US as well as an increase in business investments in both the US and Mexico. This created millions of jobs for Canada. As there can be examples and arguments pointed out against the NAFTA, those examples are usually of short-term aches and pains, while the benefits appear to outweigh those arguments in the long-term picture. It takes time for those industries to level out and adjust to the changing trade economy, but for all three countries, the economies have benefited from the agreement.

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    1. I agree that it may seem that jobs in certain fields have gone awry, but it does take time for the industries to level out. It's as if we're merging industries in three different countries all into one. By determining what country specializes in what industries, everyone can benefit due to producing goods at lower costs and exporting these goods between the US, Canada and Mexico at minimal costs as well. Cutting expenditures has the possibility to create more jobs with higher wages across the board.

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  3. Was bringing Mexico into a free-trade agreement with the United States and Canada a good or bad idea for the three countries? Why

    I think it is a good idea and a bad idea at the same time. Its a good idea because it allows for more of a global market/trade. Meaning tariffs are decreased. NAFTA has actually increased trade between all three countries. Its bad because I feel like the USA and Canada are exploiting countries that have more good, meaning were taking advantage of Mexico. Mexico has so many goods that are being exported. In the recent years Mexico is gaining more jobs for the people. All in All, we can find things that are good and bad about the whole trade agreement between these three countries. Hopefully they can keep trying to make the rules and regulations better so each country is benefitted the most.

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    1. I can definitely see the exploitation view. And I agree it's good and bad. I think intentions were good and the product of the agreement hasn't lived up to its' hype. Our unemployment still hasn't recovered from the migration of our manufacturing jobs and I don't think it's improved the Mexican economy the way some envisioned it. Hopefully, in the future, all countries involved will profit from the agreement, though it doesn't seem to be heading in that general direction.

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    2. I would agree that it has its advantages and disadvantages. The increased trade has benefited all three countries. Although Mexico is gaining some jobs the individuals are not necessarily prospering due to this increase. Corporations gain money by spending less on labor and the individuals doing the work make a small fraction of what American workers would have been paid. In my opinion that is where the true exploitation is occurring.

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  4. Was bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    Bringing Mexico into a free-trade agreement was not a good idea for Mexico. Reason being is Mexican producers worry about not being able to compete with US firms. Farmers worry that Mexican crops cannot compete with US grow grains at low price. Mexican economy is also directly tied to US economy, so in 2008 recession Mexican economy took a hit by 7 percent.

    Some US economist state due to free trade act manufacturing jobs in US have been strained in attempts to compete with lower labor rates across the southern border. US workers’ wages have not increased in years because cheaper labor is found if companies relocate manufacturing to Mexico.
    Some economist state that export related jobs pay 20 percent more than manufacturing jobs in US, so not all is bad, those jobs have been on the increase since the free trade agreement was signed.

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    1. I see what you are saying about Mexico at first, however I think it total Mexico's participation and inclusion in the agreement has overall benefited the three countries.

      As a result of the free-trade agreement, it has led to increased security through the spread of economic interdependence and decrease of the threat of war, it has helped each countries focus on their comparative advantages to one another for the most benefit in each, and it is convenient among the three countries to trade with Mexico the other closest country in the area.

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  5. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?
    I think it was good because, now it might open more trade agreements and also, we never know it might even bring back some of the jobs the United States have lost. All three countries experienced raises for there wages.The NAFTA was discovered in January 1, 1994. Places on an imported and exported good or service to encourage or discourage trade. Companies especially in three countries especially the U.S, auto industry boomed, because of this trade agreement. lllegal immigration into the United Sates will thus continue on a larger scale. NAFTA helped gain the three countries U.S. Mexico, Canada, has a stronger relationship, but I would love to see America and Mexico to get together, because when a criminal crosses the border sometimes Mexico, doesnt want to go and help the U.S. to find the criminal and I dont think that is right, because the criminal crosses that border and gets through and is lost forever. Any trade agreement are bad ideas. The hemisphere especially from U.S. and Canada to Mexico. Increases in U.S. export tend to create jobs in this country, but increases. On that day, the three countries became the largest free market in the world.

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    1. Maurice

      I agree on your point that it was a good idea in the sense that it encourages and allows more trade amongst the three nations however at the same time this can be looked at badly due to the fact that The United States and Canada can take advantage of Mexico's cheap labour and therefore there wont be an equal amount of profit and benefit amongst the three nations

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  6. Was bringing Mexico into NAFTA a good or bad idea? It depends on whom you ask. Mexico and the United States have had a conflicting history with one another that I believe stems from public opinion and attitude in each country. Some people in the US believe they should take advantage of the lower cost to manufacture products in Mexico. Others believe we should force change on Mexico to become more like the US and keep Mexicans from crossing our borders. On the other side Mexicans want to come into the US to work for higher wages so that they can support their families and the government and policy makers want to operate without interference. There is no easy, good, bad, or quick solution to the issues between the US and Mexico but I believe including them in NAFTA is a move toward something. Allowing free trade between bordering countries almost seems like common sense to me. Logistically it is a smart move because all the countries rely on importing and exporting goods to stimulate their economies. Our text book counters that “…after the [US] plunged into a deep recession in 2008, Mexico’s economy contracted by more than 7 percent…” but try to find a country in the global economy that didn’t suffer from the US’s 2008 recession.

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    1. I agree with your position. Since the US has one of the largest economies in the world, countries are going to be affected by our recession regardless if there is a trade agreement in place or not. For example, when there was a oil shortage and gas prices were very high, our economy was not the only economy affected by this problem. Bordering countries should have trade agreements in place, but they should benefit each economy instead of one over another.

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    2. You come up with a good point here. Talking about the recession in 2008, it affected not just the USA, but the whole world. NAFTA has seemed to have made the three bordering countries a better place and people can agree that having NAFTA has made things better between the countries. Having a better connection with mexico is great and is a big deal for our country. There are many mexicans in the USA, so having a good relationship means a lot. This move seems to have helped make mexico economy better as well.

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  8. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I believe that bringing Mexico into the free-trade agreement with the United States and Canada was a good idea but we are always going to see advantages and disadvantages to these decisions. I believe it was a good idea because this created more American jobs, reduces tariffs, and increases the trade between each of the three countries. The main advantage of this decision is that we got to see the US economy boom because of the increased trade of electronics, manufacturing exports, small business trade, services, and goods. The disadvantage seems to be that this decision gave the US more power over other countries. It seems that the US has seen more increases from the agreement while Mexico has seen several of the decreases such as loss of jobs and less income for farmers. Another large disadvantage is that each country could suffer from lawsuits brought against any of the 3 if international laws are broken.

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  9. Was bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I believe in the long run the trade agreement was for the best. It has strengthened our connection with Mexico and has also helped lower our prices in the economy. We have helped to strengthen Mexico's economy and they put their money back into our economy by buying from us with the money they make. I believe it has also strengthened the bond between all three countries as a whole. It might have taken some jobs from America for manufacturing but it has reduced the cost of a lot of the daily items that we buy. It also helps each country get materials from each other that they previously may not have gotten before.

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    1. I agree with you on your statements. It has offered many opportunities for all the countries. I also agree how it has strengthened a bond between the countries which could be a huge benefit in the future for all of us

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  10. Was bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I think that a free-trade agreement between the three countries is for the best. From an economic stand-point, each country has products that they specialize in and can produce at lower costs than the others. While it may diminish jobs in one field in each country, jobs will inevitably increase in another field due to specialization and being able to export larger quantities of product at low costs. These lower costs come from the ability to ship products amongst ourselves without the worry of high tariffs and taxes. Shipping is not as high because there is not as far for products to go.

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    1. I completely agree with you on the specialization. I remembering learning in my international business class that even though you might be ok at producing one product another country might excel at it so its better to import their product allowing you to focus more on the products you excel at. Trading with other countries allow you to build relationships with them also and gives you a chance to build a rapport with them.

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  11. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    NAFTA has benefited all three countries. The standards of living in all three countries have improved. Canada specifically has been provided with opportunities that it didn't have before in regards to export opportunities. US Farms have increased exports to Mexico and Canada. Nafta exports also added jobs due to the exports. I frequently hear the complaints about the jobs lost to Mexico that were previously textile or manufacturing, however it appears that many jobs were created as well.

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    1. Laura,
      I agreed and wrote something similar in my post about the jobs due to product trades, I also negated that by saying that means plenty of jobs leaving the US. Mexico offers higher production for less cost, and although putting people out of jobs is not the goal, it is a smart business move. Also this helps keep the economy in Mexico going with the new job and money circulating.

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    2. I agree with your statement and think that a lot of people are not showing any focus to the fact of how NAFTA has greatly boosted Canada most of all. They have benefited more from this agreement than anyone, but most people want to focus on Mexico. With Mexico's migration problem and rough economy, it is hard to see any benefits taking place there.

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  12. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I believe including Mexico was a good idea for the three countries for a number of reasons. First of all, it stimulates interdependence among the nations, leading to further globalization, leading to the liberalism positive-peace we enjoy today between the three countries. So, the decreased chance of war is as much a positive as it is a value on our shared security interests.

    Secondly, based on comparative and absolute advantages in trade, the three countries each produce certain products either better or faster than the others, so it is to all of their economic mutual advantage to produce the products they are individually best at producing, and trading for others so there is the most products, economic activity.

    Lastly, the agreement is beneficial to all three because it is convenient. There is few other countries as geographically easy to conduct trade with, so it is to the benefit of all three participating countries to lower costs and trade with the neighbors.

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    1. Caleb, I agree with you. Mexico and the US do not have the best relationship with each other, but by including them in NAFTA it almost forces peace. Both countries rely heavily on each other for trade so their economies would take huge hits if they went to war. I also agree that each of the three countries has it’s own “specialty” products and that being geographically connected is a great advantage. As an accounting major I’ve learned companies are always looking to manufacture the quickest, cheapest, and quality product they can but if they find it is cheaper to buy instead of manufacture certain products, they buy. Including Mexico gives US companies more options in manufacturing/buying/selling and saves freight cost in comparison to trading overseas.

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  13. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I think that I see good and bad in it. on one hand, we have jobs being brought to Mexico, which helps there economy, but that means that the US will lose those jobs. It does however create good relationships between the countries. The textile/factory work, produce/agriculture benefits, and economic exchange has kept the countries in a good place.

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    1. I agree with you Melissa, bringing Mexico into free trade agreement between US and Canada was a good idea. I believe encouraging free trade improves overall economy and unlocks decades long government control over Mexican economy. Free market economies will improve growth of wealth in all aspects of the society, but that free market cannot be controlled or influenced by government, like we saw in Mexico dating back to 1940s. Although free trade agreement has been a positive decision, I believe three countries aren’t benefiting from the agreement as much as anticipated, due to strong manufacturing sector out of Asia exporting and producing majority of western goods. I also believe that Mexico has struggled to adapt to new commercial farming and industrialization because they had to privatize their industries and reorganize economy in order to become a true free market that can provide for its citizens.

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  14. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I think it's intentions were good but I don't believe it's turned out the way some people envisioned it. NAFTA has taken many jobs out of the US into Mexico, but it hasn't seemed to improve the way of life down there. The companies are still run on extremely cheap labor which has not allowed the Mexican citizens to improve their existence, in many cases and it's taken jobs from here and helped to increase our unemployment rates, which have yet to recover. It was a great idea, especially since the geographic proximity is convenient for all involved, but it hasn't seemed to help any country much at all.

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    1. Saundra I agree with you, but there are some benefits to having a free-trade agreement with multiple countries. Given the chance of establishing a relationship with strong nations in the country (the United States and Canada in this case) it gives access to more possibilities then previously offered by their individual government. Even though free-trade can "tamper" with international/native jobs, it allows diversity within the economic development.

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  15. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?

    I believe it is good for Mexico because it has offered more job opportunities for them. It also has allowed for Canada and the United States to take advantage of of the number of goods that Mexico can offer.

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  16. What bringing Mexico into a free-trade agreement with the United States and Canada a good idea or a bad idea for the three countries? Why?
    A free-trade agreement is a treaty between multiple countries to establish a free trade area where commerce in goods and services can be conducted across their common border, without tariffs or hindrances but capital or labor may not move freely. In order to successfully establishing a free trade between Mexico, the United States, and Canada we have to deeply evaluate their economy, labor “benefits,” and can neighboring society handle alterations in the business menu? What I mean by this of course is that in the process of revolutionizing the business market in Mexico we’re reducing the amount of jobs available to the people of the United States, thus limits the labor factor for one country without have a strong alteration in another. Just because we brought jobs into Mexico doesn’t mean we’re changing the livening styles their forced to live within. On the upper hand of the outcome it establishes a stronger political and economic connection between the multiple countries, which could be used in textile, agriculture benefits, and series of exchanges. Overall the agreement between all the countries could be valued as an upper-hand due to the fact every nation produces specific quality products and according to the absolute and comparative advantages written in trade, it’s considered a mutual advantage dispersed between all three.

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