The EU question

Xxxx Xxxxxx xxxxxxxxxx at
Mon Apr 30 16:45:12 MDT 2001

>  I have to admit that my
> opinion of NAFTA is not nearly as categorical as Xxxx's opinion on the
> European Union, NAFTA, FMI, WB, etc.  My genuine interest was to
> the serious rationale behind the leftist call to shun the European Union.
> didn't mean to disturb anyone.

*** Gordon Hanson "Industrial Organization and Mexico-US Free Trade:
Evidence from the Mexican Garment Industry"
in _Global Production:The Apparel Industry in the Pacific Rim_.

"Critics rightly note that a maquiladora oriented development parth
contains several shortcomings. In garment manufacturing, assembly
represents the least profitable link of the value added chain; value added
by maquiladoras between 1981 and 1988 represented an avarage of  32.7
percent of the total value of maquiladora exports. Maquiladoras also face
highly cyclical demand for their labor. When US garment manufacturers have
a face downturn in demand, maquiladoras are laid off first. During the
1981-82 US recession, employment in garment maquiladoras fell by 16.9
percent. Between June and September 1990, the early phase of  the 1990-91
recession, garment employment fell by 2 percent, compared to a 6.1 percent
increase during the same period the year before"  (p.243)

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