Outsourcing the Outsourced!

Discussion in 'Current Events' started by Navy1960, Jan 7, 2010.

  1. Navy1960
    Offline

    Navy1960 Senior Member

    Joined:
    Sep 4, 2008
    Messages:
    5,821
    Thanks Received:
    1,188
    Trophy Points:
    48
    Location:
    Arizona
    Ratings:
    +1,189
    In the past decade, Mexico has become an important exporting nation, thanks, in part, to the so-called maquiladora sector. Maquiladoras are factories, where products are partly assembled, and then trucked over the border to the United States. But this unique economic border arrangement is suffering, as many of these factories move to other low-wage nations like China.

    The way it was supposed to work held great promise for both Mexico and the United States. Under special rules established for maquiladoras, products could be partly assembled in Mexico, and then shipped duty-free over the border for completion in U.S. plants. This system created thousands of relatively good-paying jobs for Mexicans and drew billions of dollars of foreign investment. But now, the growth has slowed, and even reversed.

    Over the past few years there has been an alarming exodus of factories and jobs to China and other low-cost countries. Mexico's electronics industry is down by more than eight percent. Several high-profile operations, such as one factory owned by the Netherlands-based Philips Electronics, have gone to China. More than 170 factories have closed in Mexico and moved to China in recent years, and some remaining factories have moved part of their operations across the Pacific.
    Jobs - Mexico's Border Factories Lose Jobs to Lower-Wage Countries


    From, the US, to Mexico, to China, makes you wonder where they go after that. IT does appear that the jobs that have been outsourced to Mexico and other nations are now being outsourced from there in the every increasing search for the cheapest place to make products.
     
  2. Samson
    Offline

    Samson Póg Mo Thóin Supporting Member

    Joined:
    Dec 3, 2009
    Messages:
    27,357
    Thanks Received:
    3,742
    Trophy Points:
    245
    Location:
    A Higher Plain
    Ratings:
    +4,210
    Obsentiously, the Maquilladoras were supposed to be cheaply producing goods for the USA market.

    I didn't read the article, but if I had, I'd wonder if it accounts not only for the possibility of cheaper labor costs, but also for the closer proximity to the quickly growing MARKET for manufactured goods that China is becomming.

    On a minor note, you know those red and white mints that restaurants give away?

    They're made by a Jew from New York that runs a factory in Juarez.
     
  3. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    The race to the bottom.
     
  4. antagon
    Offline

    antagon The Man

    Joined:
    Dec 6, 2009
    Messages:
    3,572
    Thanks Received:
    285
    Trophy Points:
    48
    Ratings:
    +286
    the article did not make mention of the bush admin's total abandonment of NAFTA by extending some of the same tax benefits to companies sourcing in asia. having been in the corporate infrastructure biz in san diego in 2000, i attest to that policy being a disaster. american and mexican jobs vanished overseas, and san diego lost its grip on high paying tech sectors as a result.
     
  5. Navy1960
    Offline

    Navy1960 Senior Member

    Joined:
    Sep 4, 2008
    Messages:
    5,821
    Thanks Received:
    1,188
    Trophy Points:
    48
    Location:
    Arizona
    Ratings:
    +1,189
    Samson, I imagine a lot of it has to do with cheaper labor, and some of it has to do with being closer to growing markets in China. Interesting though that in order to undercut labor costs if you factor in the difference in shipping, producing goods in China must hold much more appeal. There is a lot to be said though for being able to produce a product that you can also sell in the same market you produce it in.
     
  6. Samson
    Offline

    Samson Póg Mo Thóin Supporting Member

    Joined:
    Dec 3, 2009
    Messages:
    27,357
    Thanks Received:
    3,742
    Trophy Points:
    245
    Location:
    A Higher Plain
    Ratings:
    +4,210
    huh?

    Have another beer.
     
  7. antagon
    Offline

    antagon The Man

    Joined:
    Dec 6, 2009
    Messages:
    3,572
    Thanks Received:
    285
    Trophy Points:
    48
    Ratings:
    +286
    when you consider that mexico imports significantly more from the US than china, is right next door, and adversely effects our employment market when theirs is shitty, it makes ya wonder why we're so up on china's nuts.

    oh, their dollar leverage. forgot to consider that.
     
  8. Toronado3800
    Offline

    Toronado3800 VIP Member

    Joined:
    Nov 15, 2009
    Messages:
    3,572
    Thanks Received:
    274
    Trophy Points:
    85
    Ratings:
    +355
    I suppose in an ideal world we could redistribute enough of our income to China to make peaceful capitalists out of them one DVD player at a time while sending enough money down to Mexico to make the drug trade seem like a worse idea one whatever at a time.
     
  9. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,786
    Thanks Received:
    11,059
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,119
    Race to the top.
     
  10. Bill O'Olberman
    Offline

    Bill O'Olberman Active Member

    Joined:
    Jun 14, 2009
    Messages:
    818
    Thanks Received:
    124
    Trophy Points:
    28
    Location:
    Virginia
    Ratings:
    +124
    Isnt outsourcing an extension of free market capitalism? Jobs that require little education are outsourced to countries with a relatively abundant source of unskilled to moderately skilled labor. As long as we can find or create new industries for our labor force is there really a problem?
     

Share This Page