Monthly Labor Review

The 1982 Mexican peso devaluation and border area employment.

Monthly Labor Review | October 1, 1985 | Copyright

Regional economies are affected by business conditions in neighboring regions. Levels of disposable income and consumer preferences in external markets can influence which industries locate in a region, and economic circumstances in neighboring regions may affect local levels of personal income and employment. These conditions are illustrated by the recent economic trends along the U.S.-Mexican border. Increased manufacturing employment in Mexico expands the number of Mexican consumers able to purchase U.S. goods and services, which in turn creates conditions favorable for growth…

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