Mexico as a global logistics
Who is the second-largest trading partner of the United States?
Mexico.
Why is managing international supply chains more complex?
Due to cultural, economic, and policy differences.
How much Foreign Direct Investment did Mexico report in 2023?
USD $36,058 million.
What are tariffs?
Taxes on imported goods.
What is needed before importing a product in some cases?
A government import license.
What has allowed Mexico to double its exports as a percentage of GDP?
Trade liberalization and its strategic geographic location.
What is the first step in designing distribution channels?
Setting clear network objectives and parameters.
What is the most important manufacturing industry in Mexico?
The automotive industry.
Who defines tariffs according to the text?
The World Trade Organization.
What is a quota in trade?
A limit on how many products can enter a country.
What key industrial sectors has Mexico developed?
Automotive, white goods, and aeronautics.
What should companies define early when selecting brokers?
The ideal broker profile.
What percentage of FDI in 2023 came from the USA?
38%.
What are tariffs used for?
To protect local goods and generate income.
What is dumping?
Selling a product abroad below its domestic price.
What is the nearshoring phenomenon and how has it benefited Mexico?
It’s the relocation of production to nearby regions to reduce costs and risks. It has benefited Mexico by attracting industrial investment due to its proximity to the U.S.
How can companies find potential brokers?
Through banks, trade events, and contacts.
Why is it useful to have auto part factories near assembly plants?
To reduce costs and meet quality standards.
What can a country do if a product harms its industry?
It can ban its import.
Who gives subsidies and why?
Governments give them to support certain sectors.
Why is Mexico becoming a strong competitor compared to Asia in global industry?
Because of shorter transit times, lower costs, proximity to the U.S., good infrastructure, and skilled labor.
What is the final step in choosing a broker?
Select the best one and draft a contract.
What is the goal of the National Infrastructure Program?
To improve logistics, transportation, and economic development.
Why is it important to know export restrictions?
To avoid legal issues and economic losses
What’s the key difference between dumping and subsidies?
Dumping is by companies; subsidies are by governments.