Word: mexicanization
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Dates: during 1990-1999
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...hands control your country's fate. Money managers in the U.S. were stunned. During the Salinas era they had grown accustomed to being alerted in advance to any major change in Mexico's financial policies. In a reaction that reflected professional pique as much as considered judgment, they dumped Mexican securities as fast as they could...
...peso's troubles are expected to have little direct impact on the U.S. As Mexican wages grow cheaper in dollar terms, some U.S. firms may find it more attractive to move jobs south. But Mexico may become less attractive for firms like auto manufacturers that would still have to bring in dollar-priced American-made parts for final assembly. "Mexican products will be more competitive on the global market, and there will be more jobs created in Mexico than otherwise would have been the case," says Robert Hormats, vice chairman of Goldman Sachs International. And the prospect of gradual improvement...
...that, Zedillo came to office with the advantage of having won what was generally agreed to be the cleanest race in modern Mexican history. What he did not get was one crucial gift from Salinas. For months investors had been expecting that he would devalue the currency, a common favor that departing Mexican leaders perform as a sort of economic housecleaning for their successors...
Loose translation: "See? I was right." Like other NAFTA critics, Perot sees Mexico's turmoil as proof at last of the trade pact's perils. And he sees more proof in the offing: after the peso's plunge, with Mexican labor even cheaper, American jobs will head south en masse. The poorly concealed glee of NAFTA's foes gives the Clinton Administration yet another thing to get defensive about. If NAFTA was a blunder, then doubts arise about the centerpiece of Clintonomics: free trade, as in NAFTA, GATT and plans for Pacific Rim and Pan-American trade zones...
Oddly, the peso's devaluation actually accents the emptiness of Perot's dire warnings. The "giant sucking sound" was supposed to come largely from an unequal trade flow. Dollars, chasing cheap Mexican goods, would head south faster than pesos headed north, and jobs would follow the prevailing current...