Growing up I was one of those people that had the same backpack for all of elementary school and into high school. I loved my backpack and every time a strap would break or something would tear I made sure that I mended it. Like most of the other students I used a JanSport backpack. Along with their very well made backpacks we see around campuses JanSport also produces several different clothing lines. These clothing are also seen in our bookstore at Point Loma Nazarene University.
JanSport is owned by a bigger corporation called VF Corporation. VF owns a wide variety of other clothing companies. Because of this they outsource a lot of their production to other countries one of those countries being Mexico. In 1994 NATFA was passed which allowed Mexican factories to take on more roles within the supply chain which previously was blocked by tariffs. After these tariffs were lifted companies like VF capitalized on the change. Companies are able to pay employees much lower wages then in the US and have to give little or no benefits. They also have less restrictions on safety and disposal of waste.
This change in restrictions that was brought on by NATFA and the shift of production from the US to Mexico and other countries have caused a huge loss of jobs in the US. Some critics from the United States believe that about 250,000 jobs in the US. It is no larger beneficial for American apparel companies to have their factories within the US. They take that portion of their business overseas and across the boarder. This is a reality now in the business world but how is it affecting or country? We see the clothing that JanSport produces and we think to ourselves that we are buying a product produced by an American company. Unfortunately our economy is missing out on a large portion of the potential profit from this product in the form of taxes and jobs.