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Explanation:
3. Why is Mexican prosperity and stability resulting from the signing of NAFTA
considered of vital interest to the U.S
Answer: The Mexican prosperity and stability resulting from the signing of the North American Free Trade Agreement (NAFTA) is considered of vital interest to the United States for several reasons:
Improved Economic Relations: NAFTA has helped to increase trade between the United States, Mexico, and Canada, leading to economic growth and stability in the region. This, in turn, has resulted in increased prosperity in Mexico, making it a stronger and more stable trading partner for the United States.
Enhanced Security: A stable and prosperous Mexico is in the best interest of the United States from a security standpoint. NAFTA has helped to improve the economic conditions in Mexico, reducing poverty and providing greater economic opportunities. This has reduced the incentive for Mexicans to migrate to the United States, thereby reducing illegal immigration and the associated security risks.
Access to New Markets: NAFTA has opened up new markets for the United States and provided access to a growing Mexican economy. This has allowed American businesses to expand their reach and tap into new opportunities.
Mutual Benefits: NAFTA has provided mutual benefits to the United States and Mexico. The agreement has helped to spur economic growth and job creation in both countries, strengthening their economic ties and making them more interdependent.
Therefore, the Mexican prosperity and stability resulting from NAFTA is considered of vital interest to the United States, as it supports economic growth, enhances security, provides access to new markets, and offers mutual benefits to both countries.
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Describe the "new international division of labor.” What role do countries at different levels of development play in this new system? How do transnational corporations take advantage of this system?
The new international division of labor refers to the shifting distribution of economic activities and industries among countries that results from globalization and technological changes. In this new system, countries at different levels of development play different roles based on their comparative advantages, such as their access to resources, labor force, technology, and market size.
Countries at the lower end of development, often referred to as "developing" or "emerging" countries, tend to focus on labor-intensive and low-tech industries, such as manufacturing and assembly, where their low wages provide a competitive advantage. These countries also serve as important sources of raw materials and natural resources for developed countries.
On the other hand, developed countries, often referred to as "developed" or "industrialized" countries, tend to specialize in high-tech and capital-intensive industries, such as finance, research and development, and information technology, where their highly educated workforce and advanced infrastructure provide a competitive advantage.
This new international division of labor has significant implications for the economies and societies of both developed and developing countries. While it has created opportunities for growth and development in developing countries, it has also led to concerns about labor exploitation, wage stagnation, and income inequality. The role of developed and developing countries in this new system continues to be a subject of debate and discussion in the fields of economics and international relations.
Transnational corporations (TNCs) are able to take advantage of the new international division of labor by exploiting the differences in wages, regulations, and taxes between countries. By operating in multiple countries, TNCs can access different sources of low-cost labor, reduce their costs, and increase their profits.
TNCs often use their vast economic power and influence to lobby for favorable policies and regulations in different countries. For example, they may negotiate tax breaks or favorable trade agreements that enable them to operate with fewer restrictions and lower costs. They may also move their operations from one country to another in search of lower wages and weaker labor laws, a practice known as "outsourcing."
TNCs also benefit from the globalization of trade and investment, which has created larger and more integrated markets that enable them to increase their scale of operations and reach new customers. They are also able to take advantage of advances in communication and transportation technologies, which have made it easier to manage their global operations and reduce their costs.
However, TNCs' exploitation of the new international division of labor has also led to concerns about the negative impacts on workers and the environment. For example, TNCs' pursuit of low-cost labor has led to job losses and wage stagnation in developed countries, while their operations in developing countries have often been associated with environmental degradation, human rights violations, and corruption. The role of TNCs in the new international division of labor continues to be a subject of public debate and policy discussion.