"THE AFFECTS OF NAFTA AND CHEAP LABOR"

"THE AFFECTS OF NAFTA AND CHEAP LABOR"

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With the passing of the North American Free Trade Agreement (NAFTA) over a decade ago, Mexico has become the country of choice for American industries looking for cheap labor and low transportation costs due to proximity. NAFTA has facilitated the increase of foreign investment in border development zones called "maquilas" in Mexico. Profits for American companies investing in ÒmaquiladorasÓ along the US-Mexican border are continually high. US companies with manufacturing facilities in Mexico are able to take advantage of its lax safety and health enforcement.