Final answer:
EPZs in Mexico, like maquiladoras, arose due to the attraction of low-cost labor for U.S. corporations, leading to increased profitability and lower product costs. NAFTA facilitated the growth of maquiladoras by eliminating tariff barriers, but also resulted in the loss of manufacturing jobs in the U.S. and economic disparities in areas like Chiapas.
Step-by-step explanation:
Export Processing Zones (EPZs), specifically the maquiladoras in Mexico, emerged primarily due to the country's low-cost labor which attracted corporations from the United States seeking to inflate corporate profits and reduce product costs. With Mexico being in close proximity to one of the world's largest consumer markets, the United States, these manufacturing plants greatly benefited both countries. The maquiladoras, often owned by US corporations, are foreign-owned factories that import material or components and use cheap local labor to assemble or process products for export, mainly back to the United States.
Post the North American Free Trade Agreement (NAFTA), there was a notable increase in the establishment of maquiladoras. This agreement was aimed at creating a free-trade zone across North America, promoting Mexico to the position of the second largest market for U.S. agricultural products. However, while the intention was to benefit both countries, it also led to the loss of manufacturing jobs in the U.S. As corporations capitalized on the advantages that maquiladoras offered such as lower wages and less stringent environmental and worker-safety regulations, a significant number of jobs moved from the U.S. to Mexico.
The situation in Chiapas reflects a peripheral region seeking to benefit from the economic activity concentrated mainly in the northern sector of Mexico. Issues such as loss of biodiversity, especially concerning to Mexican maize due to the influx of U.S. corn, have risen post NAFTA. Moreover, migration movements can be seen as a result of individuals searching for better economic opportunities created by these maquiladoras, not just in the U.S. but also in Mexico from different regions and countries.