Kaplan Says Mexico Tariff Threats Have Chilling Effect on Business

The video discusses the current business climate, highlighting the uncertainty faced by businesses due to limited pricing power and reliance on logistics and supply chains. It examines the potential impact of tariffs on trade with Mexico, emphasizing the importance of maintaining strong trade relationships in North America. The video also explores Mexico's economic challenges, including inflation and currency volatility, and the implications for its economic growth.

What is one of the main reasons businesses are facing uncertainty in the current US economy?

• Limited pricing power due to globalization

• High consumer spending

• Increased government subsidies

• Stable supply chains

Why is the 11th district particularly vulnerable to tariffs on Mexico?

• It relies heavily on intermediate goods from Mexico

• It is the largest exporting state in the US

• It has a large number of home builders

• It has a strong trade relationship with China

How does the trade relationship with Mexico differ from that with China?

• It is less important for US competitiveness

• It is primarily a deficit relationship

• It focuses on intermediate goods

• It involves more final goods

What economic issue has Mexico been uniquely facing in recent years?

• Deflation

• High inflation

• Stable currency

• Decreasing interest rates

What has been a significant challenge for Mexico's economy recently?

• Increasing foreign investments

• Rising GDP growth

• Political stability

• Currency volatility