Assignment: NAFTA Canceled
Part 1
The new President of the United States just fulfilled a campaign promise and voided the North American Free Trade Agreement (NAFTA). You have a manufacturing plant in Mexico that makes goods for resale in the US and none of your other facilities can produce the product made in Mexico. What options do you have to stay competitive in the market for the goods made in Mexico?
Part 2
All options in part one are unsuccessful and you can no longer be competitive. Your last chance for success is to build a new facility. You have two choices 1) Louisville, KY and 2) Bangladesh. Detail the pros and cons of building in both a developed country and an emerging economy. What is your final selection? Why?