MNCs from these countries along the U.S. border in Mexico have pulled out and relocated their increasingly expensive Mexican maquiladora operations, due to their new less-favorable status and increasing costly tariffs and other requirements as companies representing non-member countries of NAFTA.

Question

Quizplus · Accepted Answer

Japan and Korea are the most likely choice, as they are both major MNCs with a significant presence in Mexico's maquiladora industry. Additionally, they are not members of NAFTA, which would make them subject to tariffs and other requirements that could increase the cost of doing business in Mexico. Other choices such as England and France, or Germany and Italy, are less likely as they are members of the European Union and have trade agreements with Mexico that help to mitigate some of the costs and risks associated with non-NAFTA membership. North Korea and Iran are not likely choices as they are both subject to international sanctions that would make it difficult, if not impossible, to do business in Mexico.

MNCs from These Countries Along the U