| FTAA, for those who don't know(it's gotten embarassingly low media coverage) stands for Free Trade Area of the Americas. It's kinda like NAFTA, just applying to Central and South America as well, along with the Carribean.
It's an interesting connundrum. Is it good, or bad? The hope is that, by killing tariffs, it will allow for comanies in developing Latin America to produce for the world's largest consumer, America.
My take on it is that it simply allows for the rich to get richer. Nike, who's had to ship their sneakers all the way from China, can now set up factories in convenient Peru and hire workers for the same wages. Even moreso, they might buy out local shoe companies, shutting out competition and leaving the South American consumer without representation in the shoe market.
But wait, there's more! Now that there are so many shoes being produced in Peru, Nike's decided to shut down some local headquarters, opting to set one up closer to their production lines. What happens to the people working in those shut down HQ's? I doubt they live happily ever after. The Latin American managers don't ask for wages as high as the American ones, either, so Nike's pocketing that money too.
Where does that leave us? All corporations that are multinational today will grow when FTAA is ratified, and they will suck money from those below them.
But what happens when there is nothing left to suck? Capitolism collapses on itself. Marxism, anyone? |