Question

Why do you think some United States companies began operations in Mexico.

Answer 1

Explanation:

I think U.S. companies in Mexico enjoy a range of advantages, including reduced cost of production, convenient geographical location, and government incentives such as the maquiladora (IMMEX) program.

Answer 2

Answer:

The American economy is currently in the midst of a boom the likes of which hasn’t been seen since World War II. In early July, the U.S. broke records by hitting 121 months of growth, the longest economic expansion in the history of the country. Despite the fact that we have massive GDP growth and sit at a near full employment level, American manufacturing has experienced its weakest growth in a decade, much in part due to the fact that a manufacturing exodus has been taking place.

Now, your first thought may be that American companies are picking up shop and setting down in China, but you’d be wrong. They’re heading south of the border to Mexico where a manufacturing renaissance has transformed their economy. Currently, its economy is 15th in the world with analysts projecting that it’ll reach 7th by the year 2050. But why are American companies now doing business in Mexico instead of east Asia? In short, the answer is complicated. Below, our Mexico manufacturing specialists will delve into the factors that are moving manufacturing to Mexico.

Explanation:

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