GLOBALIZATION IN MEXICO

What is Globalization?

According to globalizatio101.org , "Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world."

HOW DOES GLOBALIZATION AFFECT MEXICO???

* Socially (by Maimouna)

Globalization in Mexico has affected every aspect of the society. Domestic producers worry about competition from U.S firms. Farmers worry that Mexican crops cannot compete effectively with those grown in the United States. Many farmers lost their land and were in debt. For example peasant producers of corn and beans have been hard hit by the availability of lower-priced U.S grown grains. This created immigration. Because many local producers lost their jobs, they were forced to leave the country and find new jobs in another country. Many of them went to the U.S but practice small jobs. Since the North American Free Trade Agreement (NAFTA) was signed in 1993, the rise in the U.S. trade deficit with Canada and Mexico through 2002 has caused the displacement of production that supported 879,280 U.S. jobs. Most of those lost jobs were high-wage positions in manufacturing industries. Many people worked in the maquiladoras which were small enterprises located along the U.S-Mexico border. They were usually working in sweat and shoes shop for low wages and did not have many rights. The gap between rich and poor was increased and people wanted the government to cancel the NAFTA. It has also contributed to rising income inequality, suppressed real wages for production workers, weakened workers' collective bargaining powers and ability to organize unions, and reduced fringe benefits. Unemployment began to rise early in 2001, and 2.4 million jobs were lost in the domestic economy between March 2001 and October 2003 (BLS 2003). These job losses have been primarily concentrated in the manufacturing sector, which has experienced a total decline of 2.4 million jobs since March 2001.

Globalization had really installed poverty and a huge gap between poor and rich .

* Politically (by Rugi)

Political globalization can be defined as the increasing amount of political integration and involvement of human associations in a country. Globalization, in Mexico, started around the 1980s, during an unfavorable economic period. However, it is in the 1990s that several NGOs started to disrupt the political scene by limiting the government’s freedom of action. The political scene became strongly influenced by neo-liberalism due to globalization. The PAN (National Action Party), headed by Felipe Calderon who is the current president in Mexico, supports neo-liberalism and allying with The United States. In contrast, the PRD (Democratic Revolutionary Party) created by reputable President Cardenas’s son, is against liberalism and doesn’t support globalization. In addition, there have been anti-globalization movements such led by the popular Zapatistas of the Chiapas. There have also been many protests lead by anti-globalization activists notably against the World Economic Reform. Nonetheless, thanks to globalization, Mexicans living in the United States were able to vote in the 2000 presidential election. The internationalization of political parties and the electoral system proved to be a great change towards democracy.

* Culturally (by Salma)

Globalization deeply impacted Mexican’s culture. Mexican youth see America as a real modal. Every young boy or girl want to adopt Americans’ culture: wear American clothes; check down their pans; listen to their music; being fan of US’ stars Beyonce, Akon, jay-z…; watching their TV shows and definitely speak English. Education at the best in US universities for their children. This is threatening Mexican culture; they are losing their practices and embracing USA culture because of globalization which establishes cultural hegemony and this take away their past and what the ancestors traditions; they just follow and live their own culture behind and to face the present you should know your past.

* Economically (by Kebe)

Mexico's Economic Globalization was firstly established when the NAFTA (North American Free Trade Agreement) was signed by Mexico, USA an Canada in January 1st, 1994. This agreement alows each country free trading between each other. This agreement will remove most barriers to trade and investment among the United States, Canada, and Mexico. and also all non-tariff barriers to agricultural trade between the United States and Mexico were eliminated. The Mexican economic Globalization had many costs and banefits.

The benefits were:

- trade improve labors condition

- exports reduce polluting jobs

- exchanges of culture

- it benefits rich people

- GDP increases

- HDI increases

- FDI increases

- new technologies


The costs were:

- too much debt due to the default of loans

- unstable economy due to the rapid withdrawal of capitals

- lack of domestic bank regulation unemployement

- cost of living goes up

- sometimes the stock market crashes

- growing trade deficits and job losses

- growing inequalities between rich and poor people

- pressures on immigrations and borders

- stagnation of the economy