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