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One thing I've wondered: why aren't there more factories in Mexico? With low wages, high unemployment, semi-skilled workers, lax environmental laws and easy acc
by hugh 18y ago
One thing I've wondered: why aren't there more factories in Mexico? With low wages, high unemployment, semi-skilled workers, lax environmental laws and easy access to the world's largest market it would seem to be an ideal place to outsource manufacturing to. What does China have that Mexico doesn't?
- icey 18y agoPopulation density.
- tx 18y agoChina has enormous manufacturing "support system": they have (or have had) plenty of cheap electricity, cheap oil and other resources - they're right next to Russia with its vast supplies of everything. Add to that cheap transportation (railroad) reaching huge European market, while still serving Asian market as well. Moreover, Chinese labor is still cheaper than anything in Latin America. Did I also mention that ecology constraints in China are close to non-existent? Mexico doesn't have the scale of China nor Chinese location: it probably is better suited for US market but that's about it.
- drcode 18y agoGood question- I would guess that it's due to Mexican government mismanagment. Factories need infrastructure to support them and Mexico hasn't been able to get that into place due primarily to corruption and inefficiency. China has a culture of relatively efficient bureaucracy. This means that if a part of the country needs more water, electricity, rails, etc. to support factories, they get it. I bet now that Mexico's institutions are becoming more modern and since they have less transportation expenses to the US this will change very quickly and Mexico will be a manufacturing hotspot.
- ardit33 18y agosorry hugh, I downvoted you accidentally, I ment to upvote your post. I have had the same question too.
- icey 18y agoI just upmodded him for you.
- hugh 18y agoThanks, guys, I really don't care that much. I've got enough karma to change my top bar from ugly orange to pretty blue, what else do I need?
- michaelneale 18y agoOh blue ?? Does that happen at a thousand - anyone want to mod me up so I can find out ;) Is it a nice blue or a harsh blue?
- icey 18y agoHmmm, I would have thought you had enough karma already. Do you not see the topcolor listing in your user screen?
- michaelneale 18y agoOh you are right. I never paid attention to it before. Thanks !
- icey 18y agoHow about.... A NEW CAR?!?!!?!? <cue price is right music>
- mynameishere 18y agoThere are lots of factories in Mexico. The industrial sector as a whole has benefited from trade liberalization; in 2000 it accounted for almost 90% of all export earnings. 25.7% of total GDP (...vs about 40 percent for China.) I think there might be some differences, though, as the success of Japan, Taiwan, South Korea, and Hong Kong seems to be predictably repeating itself. Something about the Asian character doesn't seem typical, http://www.motherjones.com/news/exposure/2005/07/exposure_580x468.jpg http://www.motherjones.com/news/exposure/2005/07/exposure_58... [I haven't done the above since the 3rd grade. Lining up for a bathroom break. Geez.]
- hugh 18y ago[I haven't done the above since the 3rd grade. Lining up for a bathroom break. Geez.] You obviously don't go to the same bars I do, then.