Economic globalization directly leads to economic inequalities between the nations of the global north, or "developed" nations, and the nations of the global south, or "developing" nations. Through globalization, nations of the global north, such as the United States, are able to exploit the labor and resources within global south nations. For instance, through the North American Free Trade Agreement that went into affect in 1994, the United States flooded Mexico with subsidized corn and grains, leaving Mexican farmers unable to make a living. Many Mexican farmers lost their land and homes and were forced to move to the cities to find work in incredibly harsh U.S.-owned factories, or to leave their homeland and attempt to find work in the United States. Through NAFTA, U.S. companies are able to pay Mexican workers incredibly low wages in factories and on their farms because of far less regulated labor laws, while the companies profit immensely. Additionally, these highly unregulated U.S. owned factories and companies, particularly mining companies, have led to environmental degradation on a massive scale within Mexico, which has directly affected the health and lives of working-class and unemployed Mexicans. Additionally, the powerful U.S. companies are able to lobby in the Mexican government against trade, labor, and environmental regulations. This example of how NAFTA has affected Mexicans is just one example of how globalization hurts nations and people of the global south.