What is it about?

The uncertainty around Trump’s foreign policy agenda and political posture has already weakened the economic outlook of Mexico. The possible consequences for MNEs in Mexico have not been fully explored, for this reason this research has been carried out to analyze the possible impacts of new U.S. protectionist trade measures on established export platforms of automobile companies in Mexico.

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Why is it important?

The research findings are useful to companies and business people that have an interest in the NAFTA region and in the implications that trade policy changes would have for business operations. Potential investors interested in Mexico have the possibility of placing investment decisions on hold. However, current firms in Mexico do not have this opportunity, and they need to start identifying and assessing the risks in order to develop response plans if further action is needed.

Perspectives

I hope this article reduces the uncertainty for MNEs in Mexico by generating relevant literature. A guidance for companies is presented to orient them towards the most important factors that they need to identify in order to assess their own level of vulnerability.

Jessie Astrid Orozco Soto
Hochschule Osnabruck

Read the Original

This page is a summary of: The impact of the new protectionist stance in US trade policy on selected German companies in Mexico, The International Trade Journal, October 2018, Taylor & Francis,
DOI: 10.1080/08853908.2018.1523761.
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