In Search of Greater Profit

Key terms

multi-national corporation UAW the Big Three maquiladora border towns NAFTA free trade tariff

Read the article " Up in Arms, But Down in Clout" and "Why Mexico Scares the UAW" and answer the following questions:

1. Why are the UAW workers on strike?

2. Where have the jobs gone? What type? How many?

3. What is the big shift? Why has it happened?

4. What has happened to union wages? Explain using statistics.

5. Why are there fewer strikes today? Use GE example to further explain answer.

6. Explain what Huffy has done, referring to wages.

7. What is the outlook for union workers?

8. What has changed with US factories in Mexico?

9. What has helped increase the number of auto and auto parts exports from Mexico to the US?

10. Besides US companies, who else is moving operations to Mexico? Why?

Read the article "Paying the Price for Free Trade" and do the following:

11. From entire article, compile a list of criticisms of NAFTA and foreign factories in Mexico.

12. Review list and circle or highlight key criticisms.

Discussion Questions:

1. Why are US corporations moving to Mexico? How is the US government helping this trend?

2. Why are there serious problems with toxic waste in the border region?

3. Why don't Mexican workers getting paid 50 cents/hour just move and get a job somewhere else?

4. If the US increased tariffs to goods produced in Mexico, how would it effect companies with maquiladoras?

5. How would a global minimum wage affect these multinational corporations?

6. What would happen if there were a set of United Nations environmental standards that applied to every country on Earth?

In Search of Cheaper Labor

Read the article "The Border Boom: HOPE AND HEARTBREAK" and answer the following questions:

1. Why are US corporations moving to Northern Mexico?

2. Why do you think Mexico is willing to have these corporations in their country even though they are not receiving any of the profit?

3. How is the US government helping the Maquiladoras?

4. Why do the owners of the companies feel for the most part that what they are doing is all right?

5. Why are there serious problems with toxic waste in this region?

6. Why don't the Mexican workers profiled in this article just move and get a job somewhere else?

7. What would you do if you were Norma? How? Why?

8. What would happen if conditions in Mexico improved and people like Norma were able to find meaningful work near their families and away from harmful chemicals?

9. What would happen if there were a set of United Nations environmental standards that applied to every country on Earth?

10. How would it effect multi-national corporations if there were a global minimum wage?

11. If the US applied taxes (tariffs) to goods produced in Mexico (making them more expensive for Americans to buy) how would it effect the companies whose factories are in Mexico? Do you think they would stay in Mexico, or return to the US?

{the last three questions are based on real proposals}

Further Discussion:

Another way that corporations cut labor costs is to get machines to do the work instead of people. Often, we assume that this is a step towards progress. The people who held those jobs, however, may disagree. Think about the following:

1. Why can't those workers just go out and get another job?

2. If we don't use human resources to build things, what kind of resources are we using?

3. What kinds of jobs would be left if we mechanized everything we could?

4. What machines do you use often now? Could the things they do be done without machines?