Ford Motor Company recently announced plans to build a new production facility in Mexico and will be able to take advantage of reduced production costs related to wage rates in the local area. Ford will sell the vehicles in Mexico and will also export the Focus model the plant produces around the world. The finished products costs will be based on the Mexican peso, which fluctuates but is generally considered to be weaker than the U.S. dollar or euro. This will provide Ford with a price advantage in the export market. This is an example of the _______ force that affects international marketing activities.

Question

Quizplus · Accepted Answer

This is an example of an economic force that affects international marketing activities since Ford is taking advantage of reduced production costs related to wage rates in the local area and also using the weaker Mexican peso to gain a price advantage in the export market.

Ford Motor Company Recently Announced Plans to Build a New