Question 1
Members of ________ benefited the most from the maquiladora program.
◦ NAFTA
◦ EFTA
◦ EU
◦ MERCOSUR
Question 2
Minimizing Trade Barriers (Scenario)
National Appliance Corporation (NAC) needs to build a new manufacturing facility to meet the increasing demand for professional-grade appliances. NAC managers are considering building the facility in Mexico but are hesitant because of the high tariffs involved. Another possible location for the facility is India; however, the country also imposes high tariffs. Wherever NAC builds a plant, parts will need to be imported from other nations.
Which of the following would be most important for NAC managers to consider while taking a decision in favor of building a facility in Mexico or India?
◦ Has NAC engaged in dumping in the past?
◦ How would appliance parts and finished products be categorized when passing through customs?
◦ Is employee empowerment culturally favored in Mexico and India?
◦ What entry strategies are available in both countries that would allow NAC to minimize import barriers?
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