The Impact of Localization on Logistics and Employment along U.S Border

Globalization is often seen as an unstoppable, irreversible force. Analysts contend that trade between nations can only expand spatially and can only grow in complexity. By all measures, this perspective is largely accurate. However, the case of NAFTA and the impact it has had on trade in the U.S and its neighbours serves to show that the spatial expansion of trade between nations is not inevitable. We may call this focus on enhancement of trade between neighbouring countries â€Å"localization†, as opposed to globalization. This paper shows how the flow of trade between the Orients and the U.S shifted closer to home, to Mexico. It also shows the impact this shift has had on shipping and employment in the U.S states that border Mexico, as well as on Mexico itself. U.S-Orient Flow of Cargo Traffic As of 2012, two ports that were relatively mid-sized only two decades earlier had grown into the busiest in the country, El Paso, in the State of Texas, handled $65 billion worth of cargo during the first three quarters of 2012, while Laredo Port, also in the same state, handled $172.5 billion. This was not always the case; as of 2004, it was ports in Los Angeles, California, that handled the largest volumes in the U.S, catering to more than 7.3 million containers in that year. Los Angeles was followed not far behind by Long Beach ports, which together took care of 5.8 million containers. Taken together, in 2004 Los Angeles and Long Beach handled 68% of cargo traffic in the whole of the West Coast. The large volumes handled by these ports in the West Coast can thus be attributed to the long growth in trade between the U.S and developed Asian economies such as Japan, as well as emerging economies such as Singapore and China. As the globali... ...unta colonet multimodal project in baja California† (Dec 2009), in Border Brief, Univ. of San Diego Press. Heineman, B.W (2008). Wal-Mart’s Massive Bribery Scandal: What Happens Now? Harvard Business Press. Web. Lawrence, C. I-69 Project Overview. Retrieved 26th March 2014. Web. ONESCU: Multinational Corporations and The Global Economy, Retrieved 24th Mar 2014. Web. Rena, R. Impact of WTO policies on developing countries: issues and perspectives. Transnational Corporations Review (Canada), (2012)4(3):77-88. Web. The United States Bureau of Transport Statistics. Border Crossing Data – U.S-Mexico. Retrieved 26th March 2014. Web. Vogel, R.D. â€Å"The NAFTA Corridors: Off-shoring U.S. Transportation Jobs to Mexico†, in Monthly Review (Feb 2006), 57(9). Trujillo, L. Privatization and Regulation of the Seaport Industry. Retrieved 26th March 2014. Web.