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Multinational Capital and Free Trade Zones

itions, and subject to police violence and intimidation if they protest against their abusive employers (Ratnapriya, 1995). The same comments have been advanced by Raynolds (1998) with respect to maquiladora operations throughout the Caribbean and the Dominican Republic. In export processing, the concentration of firms in free trade zones stimulates the creation of a distinct new labor force. This labor force is largely comprised of women who are particularly vulnerable to exploitation and abuse (Raynolds, 1998).

Topik (1998) examined free trade zones from the perspective of dependency theory. Dependency theory opposes a universal theory of stages of growth and argues that not all countries go through the same stages. Further, dependency theory suggests that capitalism may not necessarily develop the forces of production in countries of the periphery in the same way that it did in the center. Topik (1998) believes that dependency theory is a good vantage point from which one can understand the negative effects of free trade zones and the creation of export processing factory systems of economics.

One of the most pressing negative effects of this particular system, says Safa (1997), is that an economic emphasis on free trade zones often results in declining employment opportunities outside the zones. Few countries that rely on free trade zones for economic growth have created the regulatory environment needed to ensure that the rights of workers are protected. Safa (1997) points out, for example, that in the Dominican Republic, union activity has been permitted only since 1992 and then, only under carefully monitored conditions.

In Mexico, Gruben (2001) states that the most striking industrial phenomenon in the wake of NAFTA, is the rapid growth of plants that operate under the maquiladora program. In its simplest organizational form, a maquiladora imports inputs, processes them, and then ships them back to the...

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Multinational Capital and Free Trade Zones. (1969, December 31). In LotsofEssays.com. Retrieved 06:41, April 27, 2024, from https://www.lotsofessays.com/viewpaper/1694497.html