Global pressures and the search for efficiency: Export platforms in Central America and the Dominican Republic
- Author: United Nations
- Main Title: Foreign Direct Investment in Latin America and the Caribbean 2018 , pp 133-164
- Publication Date: October 2018
- DOI: https://doi.org/10.18356/d60a21f8-en
- Language: English Spanish
Many transnationals have set up operations in Central America and the Dominican Republic as a way of cutting their production costs. These types of investments are being made in Mexico, as well, and are common in many Asian and some African countries, but they are rarely seen in the rest of Latin America and the Caribbean. This strategy has led to the development of export sectors based on low labour costs and preferential access to the United States market as a means of coping with technological changes, competition from Asia and modifications in trade treaties with the United States. Most of these export activities take the form of assembly plants or factories that process certain components, many of which come from the United States, and then re-export them.
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