Post-WW2 Flashcards
What tradition developed during this time between the US and Mexico?
Mexican and US Presidents visit each others countries every year, not always state visits, less formal, develop personal/comfortable relationship, help with negotiations.
How did the US-Mexican relationship progress after WWII particularly economically?
New Mexican President, new economic policy, stabilising element, post war US hadn’t paid for everything they bought during WW2, bought on credit, Mexico didn’t want hostile relations after alliance, wanted to rely on booming US economy, Mexican economy also growing (Mexican Miracle), US favourable to that development, good to have a stable neighbour, stimulates US economy too.
What was the maquiladora (or maquila)?
1960s, US companies in Mexico, cheaper labourers, US companies set up just over the border and hire locals, factories were bonded warehouses, improved over the border then moved back, US-Mexican agreement on import duties.
What is ISI?
Import Substitution Industrialisation.
Post-WW2, common worldwide, Mexico didn’t have capability to industrialise (capital, skilled labour, etc.) need to first designate which industry you want to develop, introduce tariff on that product (e.g. cars), raises prices so residents start to buy Mexican cars, US car manufacturer start building cars in Mexico, send parts to Mexico and assemble there, go under the tariff barrier.
How did the US respond to its companies moving to Mexico under ISI?
US fine with process as long as Mexico treated the companies fairly, benevolent process, Mexican labourers, US upper management, not paid as well as US but treated well & met Mexican laws, led to close economic relationship between US and Mexico, benign cooperation.
