In the First Years of the Expansion of NAFTA to Include

question 56

Essay

In the first years of the expansion of NAFTA to include Mexico many companies had compelling reasons for opening a plant in Mexico.The Mexican government was enticing some businesses with incentives such as no taxes and free land.What international trade theory could justify this action? Explain.

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Definitions:

Repaid

The action of paying back money that has been borrowed, often including an interest component.

Liability Coverage

Insurance that provides protection against claims resulting from injuries and damage to people and/or property.

Negligently

Acting in a careless or thoughtless manner, often resulting in harm or damage to others.

Indemnity

A security or protection against a financial liability or loss.