Automotive Industry in Mexico - 1392 Words

Automotive Industry in Mexico 2 Mexico, a place for doing business in the automotive industry Searching facts to justify the settlement of US investment Student Name Professor Name Course Table of Contents Mexico, A Place for Doing Business in Automotive Industry 3 Introduction 3 Markets, Demographics, Resources 3 Business Environment 4 Cultural Environment 5 Economic Environment 5 Political Environment 6 Legal Environment 7 Conclusion 7 Bibliography 8 Introduction When establishing a business especially an automotive one, no compromise can be made on the factor of quality. So, the question is; should a business be established in the automotive industry in Mexico. This paper answers this question taking into consideration various aspects related to business, politics, economy, markets and legal factors in Mexico. U.S. has always been a support for flourishing of democratic connections between various countries and so, when the borders meet, it makes it a convenient choice to establish a business (Klepak, 2008). To maximize the profits there are certain factors which should be considered. These factors are described in the next sections. Markets, Demographics, Resources Mexico is an attractive market for the industry we are investing in and some details related to this are provided below: Major Market Opportunities can be found in Mexico City, Monterrey and Guadalajara. Automobiles produced in Mexico are also exported toShow MoreRelatedA Brief Note On The Auto Industry And The Automobile Industry845 Words   |  4 PagesTwo Tier Wages in the Auto Maker Industry Two-tiered wages in the automobile industry are a result of agreements for a government bailout with the top three auto makers in the United States: GM, Chrysler, and Ford. One of the major issues identified in the near fall of these major automakers, aside from increase in gas prices and overall recessions, were the cost of labor. Hourly wages and compensations were as high as $73 per hour for Ford, GM, and Chrysler despite low overall low satisfactoryRead MoreNafta And Theu.s. North American Free Trade Agreement1063 Words   |  5 PagesIntroduction The formation of NAFTA (North American Free Trade Agreement) has brought many advantages among the nations of the U.S., Canada, and Mexico. Since its inception in 1994, it is difficult to see the great effect NAFTA has economically whether it is good or bad due to currency fluctuations, and economic growth (Villarreal Fergusson, 2014). This is why the paper will go into the advantages that NAFTA has brought to the countries mentioned above. The advantages that will be discussedRead MoreMercedes Benz Research1649 Words   |  7 PagesMercedes-Benz Mercedes-Benz 1 Mercedes-Benz 2 Overview Mercedes-Benz is a German automotive company that dates back to the early 1900’s. In 1901, Karl Benz started the Mercedes-Benz company. Though he had previously built his first automobile in 1886, The Mercedes-Benz brand was not established till 1901. In the first year of the company’s existence, Karl BenzRead MoreEssay On The Auto Industry966 Words   |  4 Pagespeople in Canada, the assembly and parts manufacturing industries play a significant role within the economy. Prior to 2005, numerous factors combined to make Canada the perfect place for auto parts and assembly, including: â€Å"a weak Canadian dollar, low inflation and interest rates, a well-educated work force, and a strong social safety net provided by the government†¦Ã¢â‚¬  (Cadieux, 2005) Due to international competitiveness within the auto industry and rising wages, production costs within Canada haveRead MorePersonal Presentation And Style Of Business984 Words   |  4 Pagescreative/solutions-oriented person. Career Overview Mr Gijon grew up in Mexico (hence his Spanish language ability) and completed his secondary education in international schools there, before going on to University at two Texas based Universities. During his degree, he did an internship/sandwich work experience with BMW in Germany - and picked up worthwhile German language ability there. He returned to America to complete his degree, and joined the automotive industry with a business based in Michigan, which providedRead MoreNafta At 20 : Overviews And Trade Effects By Villarreal And Fergusson756 Words   |  4 Pagesdetail how what NAFTA is and how it has affected the US, Canadian, and Mexican economies. Therefore, let us briefly examine NAFTA. NAFTA has been in effect since January 1, 1994 and is of continued importance because of the importance of Canada and Mexico as trading partners and due to the implications that arise for US trade policy. Furthermore, with implementation of NAFTA, these are some of the provision. It includes items such as tariff and non-tariff trade liberalization, rules of origin, servicesRead MoreSupply Network Globally Of Automotive Industry1115 Words   |  5 Pages4.1. Overview of Supply Network Globally of Automotive Industry Sturgeon et al proposed the nested â€Å"Geographic and Organizational structure of the Automotive† supply network, which analyses from the production to design process in global, regional, national and local perspective. The main reasons of the worldwide spreading final assembly plants are described as follows (Sturgeon et al., 2009): a) Market saturation b) High level of motorization c) Political pressures d) Higher revenues from emergingRead MoreCorporate Overview Of The Automotive Industry1548 Words   |  7 PagesCorporate Overview Automotive Industry The automotive industry is widespread globally with a wide range of organizations involved in the following: development, marketing, manufacturing, designing, and sales. This analysis will take a further look at automakers in the industry, more specifically General Motors (GM), Volkswagen (VLKAY, Honda, Nissan, Toyota. Beginning around the 1890s, the automotive industry has evolved and undergone shift changes in consumer trends, product development, marketingRead MoreMexico Is The Second Largest Economy Of Latin America Essay1482 Words   |  6 Pagesto the World Bank (2016), â€Å"Mexico is the second largest economy in Latin America† (Iliff, 2016). Mexico is one of the largest auto producers and exporters. â€Å"Mexico, produced 3.4 million vehicles in 2015, raking seventh largest vehicle producer in the world and first in Latin America† (Administration, I. T. (2016). Automotive manufacturing is growing, and large automotive companies such as Nissan, Mazda, Volkswage n, and GM, who have plants already established in Mexico, are now planning to expandRead MoreJapanese Automakers in the U.S. Economy Essay1098 Words   |  5 PagesHonda dealership to buy a vehicle that is more reliable and efficient than its American competitor? Are we obligated to buy an American car simply to help support the economy? Do Japanese automakers make a negative impact on the automotive industry? No. In fact, Japanese automobiles and the many markets they support stimulate the economy in many more ways than they weaken it. As you read on, Im sure you will understand why. In the past, it was the United States who broke