China seems to have cracked a good deal by leasing majority of Mexico for 50 years, in order to overcome the farmland issue and also enabling Chinese companies to build factories in Mexico to supply the North American market more easily. But will that solve problems for Mexico?Currently it seems like Mexico is on the cliff edge. 80% of Mexico's exports are consumed by US consumers and the slowdown in US means an unlimited supply of problems for Mexico. Because Mexican manufacturers rely heavily on US companies, most of them are laying off workers on a large scale. In places such as Nuevo Lared, employers have laid off as much as 40% of their work force and lost at least 40% of their business in a week. Mexico too like most nations is turning to a stimulus package for rescue. It is looking at a $5.26 billion stimulus package to support the crumbling economy. Many Mexicans used to illegally immigrate to US for better jobs. Jobs in Texas would pay them 40 times the daily wages they would earn back home in Mexico. Now, companies are sending these workers back and denying employment to new workers from across the border.
Will Mexico will be the next in line?
No comments:
Post a Comment