Advanced Manufacturing and Mexico: A New International Division of Labor?
- 1 January 1994
- journal article
- research article
- Published by Cambridge University Press (CUP)
- Vol. 29 (2) , 39-71
- https://doi.org/10.1017/s0023879100024122
Abstract
Much of the intense debate over the North American Free Trade Agreement (NAFTA) has focused on the number and kinds of jobs that Mexico could gain and the United States could lose as a result of more extensive economic integration (Faux and Lee 1992; Hufbauer and Schott 1993; Lustig, Bosworth, and Lawrence 1992; Weintraub 1993). This debate has raised the related issue of the nature of Mexico's industrial capability, a topic that predates NAFTA and will remain central regardless of the final outcome of the treaty. This article will explore that capability by focusing on a key question: Is Mexico a potential site for high-tech production or does its comparative advantage lie in labor-intensive low-tech operations?Keywords
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