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Difficulty: HardEconomics in the Global Age

Source: Declaration of the Zapatista Army of National Liberation (EZLN), Mexico, January 1, 1994.

"For us, the indigenous people of Mexico, the free trade agreement is a death sentence. The entry of cheap agricultural imports from the United States will destroy our communal farming system, the *ejido*, and force us off our ancestral lands to become cheap labor for foreign-owned assembly plants (*maquiladoras*) along the northern border. Globalization is not about integration; it is about the recolonization of our territories by multinational corporations."

The concerns expressed in the passage are most directly a response to which of the following late-twentieth-century developments?

  1. A
    The revival of early modern mercantile strategies designed to secure state-controlled monopolies.
  2. B
    The division of the developing world into direct colonies administered by foreign governments.
  3. The proliferation of regional trade agreements and neoliberal policies that promoted global economic integration.Answer
  4. D
    The complete erasure of regional identities in favor of a uniform global cultural landscape.

Answer

The proliferation of regional trade agreements and neoliberal policies that promoted global economic integration.
The correct answer is correct because the Zapatistas are reacting to the implementation of the North American Free Trade Agreement (NAFTA), which is a key example of a regional trade agreement. NAFTA and other neoliberal policies aimed to reduce trade barriers, encourage foreign investment, and integrate economies globally, which critics argued would disadvantage local agriculturalists and benefit multinational corporations.

Step-by-Step Solution

1
Analyze the source to identify the specific economic event and its context.
The source refers to a 'free trade agreement' (NAFTA, effective January 1, 1994) and its impact on Mexican agriculture and labor.
This establishes the historical context of late-twentieth-century globalization and economic integration.
2
Identify the author's primary argument and target of critique.
The authors argue that free trade agreements and multinational corporations exploit local labor and harm communal landholdings.
This helps connect the specific critique to the broader global economic processes that enabled such agreements.
3
Evaluate the options to find the development that NAFTA and the Zapatista response represent.
NAFTA represents a regional trade agreement designed to promote economic integration under neoliberal frameworks.
This aligns directly with the target concept of economics in the global age, specifically regional trade blocks and economic liberalization.

Key Concept

Economic globalization, regional trade agreements, and neoliberal economic policies in the late twentieth century.
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Topics

Economics in the Global Age

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