BUSA 645 Week 3 Discussion 4 | Assignment Help | Abilene Christian University

BUSA 645 Week 3 Discussion 4 | Assignment Help | Abilene Christian University

BUSA 645 Week 3 Discussion Question 4: Case Study: Regional Trade Pacts Give the Mexican Auto Industry an Edge 


·         Case Study: Regional Trade Pacts Give the Mexican Auto Industry an Edge 

o    This case from Ch. 9 of the International Business text concerns the growth of the Mexican auto industry due to a wave of foreign direct investment spurred by regional trade agreements. Beginning with the establishment of the North American Free Trade Agreement (NAFTA) in 1994, Mexico has established over 40 different free trade agreements that provide Mexican automakers duty-free access to markets throughout the world. These agreements, along with Mexico’s relatively low labors costs, have attracted investments from many of the world’s largest car companies and auto parts suppliers, making Mexico the sixth-largest car producer in the world. Write at least 500 words in total in response to the following discussion prompts, as well as two responses to others in class of least 200 words each.

1.      What benefits have Mexico’s regional trade agreements had on the country’s economy?

2.      How do Mexico’s trade agreements benefit businesses or consumers in other countries?

3.      BMW recently decided to open a factory in central Mexico instead of expanding its operations in South Carolina. Do events like these signal that the North American Free Trade Agreement (NAFTA) was a bad deal for the United States?

o    Another Perspective: For an in-depth discussion of the political and economic impacts of NAFTA, review the following:

University of Pennsylvania (2014).  NAFTA, 20 years later: Do the benefits outweigh the costs? Wharton School. Retrieved

 

from: http://knowledge.wharton.upenn.edu/article/nafta-20-years-later-benefits-outweigh-costs/ )

 

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