The World Is Flat
By: Thomas L. Friedman
Chapter 9: The Virgin of Guadalupe
The Virgin of Guadalupe is the patron saint of Mexico, and like any other figure, little statues of it have been produced for many years. Typically, Mexico would simply produce these statuettes, as it is known as a low-wage manufacturing, but recently, China has taken over this responsibility, amongst many others, because it can produce and ship them more cheaply than the native countries can even make them. This recent trend reflects the general trend of the flattening of the world, and Mexico is certainly feeling that happen to them.
For many decades, Mexico had been exporting products to areas such as the United States because of its low-wage manufacturing capabilities. Until recent years, it had even been the number two importer to the United States, behind Canada. China took that role though, in 2003, even though the creation of the North American Free Trade Agreement (NAFTA) gave it an advantage when dealing with the U.S., Mexico’s exports have steadily been declining since 2001, the first time in two decades. To makes things even worse for Mexico, some Chinese companies are starting to replace the native companies in Mexico.
Egypt is facing a very similar situation as well. During the month of Ramadan, as it has been custom for centuries, schoolchildren carry around colorful lanterns called fawanis. Typically, these lanterns were manufactured in Cairo by low-wage workshops but that was until China took over the market with its plastic, battery-powered lights. Many locals feel that the Chinese are interfering with tradition because the fawanis are a local Egyptian item, but many others actually prefer the Chine ...