Sew-Right (Scenario)
A French sewing machine company, Sew-Right, has manufacturing facilities twenty miles outside of Paris. Since the formation of the EU, Sew-Right's managers have been considering internationalizing the Sew-Right company. Sew-Right's managers have also discussed the possibility of opening additional manufacturing facilities in Germany and Mexico. Sew-Right's managers and executives are discussing the various options at a conference, and hope to reach a decision soon.
-Which of the following would most likely result if Sew-Right opened a facility in Mexico?

Question

Quizplus · Accepted Answer

Opening a facility in Mexico would improve Sew-Right's access to members of NAFTA (North American Free Trade Agreement) which includes the United States, Canada, and Mexico. This would allow for easier trade and distribution between these countries. Trade diversion and increased relations with EU countries are not directly related to opening a facility in Mexico, and streamlined distribution facilities could potentially be a result of opening a facility in any location, not specifically Mexico.

Sew-Right (Scenario) A French Sewing Machine Company, Sew-Right, Has Manufacturing Facilities Twenty