NYT- Mexico

Why are companies setting up in Mexico?

• Because companies with factories in US suffered shortages of parts made in Asia

• Because chinase companies assume the breach between China and US is not going to endure

• Because China is setting up operations outside North America Trading Block

The concept of Nearshoring involves international companies moving production closer to consumers to limit their vulnerability to shipping problems and geopolitical tensions

• True

• False, it involves building apartments near to factories

• False, it involves locking two countries in fierce trade war

State one reason which explains why foreign companies are being set in Mexico...

• To reduce the risk

• To increase the market share

• To improve highways in developing countries

Answer explanation

“After going through the pandemic and the supply chain crisis, the China Covid shutdown, many North American manufacturers would like to eliminate the risk,” said Sean Seo, a Seattle-based executive for DY Power.

Select why Chinese companies preferred setting up factories in Mexico than Vietnam

• Because their market was US and the shipping cost was high

• Because voyages that previously cost $2,000 were 2 times as much

• Both are correct

Answer explanation

Man Wah had already responded to the tariffs by building a factory in Vietnam, and using it to make products for the American market.

Man Wah was moving 3,500 40-foot shipping containers a month across the Pacific from Vietnam. Voyages that previously cost $2,000 were suddenly 10 times as much.

Which agreement started the path before?

• Japanese and South Korean companies. Chinese firms are establishing factories that allow them to label their goods “Made in Mexico,”

• Uruguay and South Korean companies, Mexican firms are establishing factories that allow them to label their goods “Made in Mexico,”

• Japanese and South Korean companies, Chinese firms are establishing factories that allow them to label their goods “Made in China,”

Answer explanation

They are taking advantage of an expansive North American trade deal.

Chinese firms are establishing factories that allow them to label their goods “Made in Mexico,” then trucking their products into the United States duty- free.

Select the propers definition for Mr García (2 are correct)

• He's a 35-year old governor from Nuevo León.

  He looked for companies in WEF

• Since 2021 he is the governor and Nuevo León has obtained $7 billion in foreign investment

• He runs a sideline enterprise as a developer in Monterrey

• Took advantage from a lucrative opportunity to turn a cattle ranch into an industrial park

Answer explanation

The other options describe Mr Santos

-Took advantage from a lucrative opportunity to turn a cattle ranch into an industrial park

-He runs a sideline enterprise as a developer in Monterrey

Who is Mr. Chan? Select two answers

• Owner of Man Wah Furniture Manufacturing

• Someone who used the Chinese social media platform WeChat to connect with Mr. Jiang looking for a joint venture

• Governor of Nuevo Leon

• The person who runs a sideline enterprise as a developer in Monterey

Answer explanation

Governor of NL is Mr García.

If you answer "The person who runs a sideline enterprise as a developer in Monterey" he is Mr Santos. It means desarrollador de empresas secundarias (promotor).

How was in 2021 the foreign investment divided in Nuevo León?

• 30% chinase companies

  47% from USA

• 47% chinase companies

  30% from USA

• 90% chinase companies

  10% from USA

What is Hofusan Real State?

• The response to the demand. They created an ecosystem of warehouse, factories and hotels

• A company from Sydney based on Mexico

• A Chinese company that do not operate with the label Made in Mexico

Write the conclusion of the case "Why Chinese Companies Are Investing Billions in Mexico"