Tapping into its location-specific advantages

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Reference no: EM132122647

During the 1990’s, many North American, European, and Asian MNEs set up operations in Mexico, tapping into its location-specific advantages such as (1) proximity to the world’s largest economy, (2) market-opening policies associated with NAFTA membership, and (3) abundant, low-cost, and high-quality labor. None of these has changed much. Yet, by the 15th anniversary of NAFTA (2009), there is a significant movement of MNEs to curtail operations in Mexico and move to China. Why?

Reference no: EM132122647

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