Minimizing Trade Barriers
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 best supports a decision to build a plant in Mexico instead of India?

Question

Minimizing Trade Barriers 
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 best supports a decision to build a plant in Mexico instead of India?

Quizplus · Accepted Answer

Foreign trade zones along Mexico's border can help minimize trade barriers by allowing parts to be imported with reduced or no tariffs, making it a strategic choice for NAC.