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    Maquiladoras Zone and the Effects of the North American Free Trade Agreement

    Number of Pages: 5

     

    Summary of the research paper:

    In five pages this paper examines how the Maquiladoras Zone has been affected by NAFTA in a consideration of environmental issues and economic problems. Five sources are cited in the bibliography.

    Name of Research Paper File: RT13_SA142NFT.rtf

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    Unformatted Sample Text from the Research Paper:
    NAFTAs impact on this zone that had been created in 1965. The successes of the 1990s are highlighted but warnings are given that things will not continue forever. The potential  economic problems are explored. Environmental issues are duly noted. Bibliography lists 5 sources. SA142NFT.rtf  The North American Free Trade Agreement (NAFTA) has changed life for the workers in the Maquiladoras Export Processing Zone. The social, economic, political and environmental conditions for companies  and employees have been each, to some extent, altered during the 1990s. First, it is important to explore this area that has been affected by the trade agreement. The maquildora  program is affected by NAFTA and understanding the program is integral to comprehending how NAFTA has affected the people in that area. The  maquildora program is technically a business classification created by SECOFI that traditionally allows foreign investors advantages such as total foreign ownership, relaxing of import tax in some circumstances, and operation  without ownership of assets (Sinclair, 1996). Within the program, profits are for all intents and purposes, guaranteed, but they are not very high (1996). The companies still must share 10%  of their profits with the workers (1996). Accounting changes entailed by the laws must be considered. The mechanism, in respect to  how those doing business in the district must declare assets, is part of a greater price transfer issue that has been forced on the maquiladoras (Sinclair, 1996). The change embraced  the concept that maquiladoras would be forced to raise their declared profit percentage to a rate similar to what would be charged by firms that are unrelated, doing an arms 

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