Question

Identify the product line you would recommend expanding into mexico and explain two global business strategies you feel would help the business enter that market.

Answer 1

For expansion into Mexico, a textile product line utilizing maquiladoras and leveraging global commodity chains is recommended. Strategies include using NAFTA's benefits for free trade and focusing on inclusive international cooperation for ease of economic development across borders.

Step-by-step explanation:

To recommend a product line for expansion into Mexico, it is advantageous to consider maquiladoras due to the country's established history with these manufacturing systems. Specifically, a product line in the textile sector could be beneficial as it leverages the existing global commodity chains in northern Mexico. The integration of economic links between workers and corporations for manufacturing and marketing is already in place, making it a strategic move.

Two global business strategies that would be appropriate for entering the Mexican market are:

1. Adopting a free-trade-oriented strategy by taking advantage of the North American Free Trade Agreement (NAFTA), which turned North America into a free trade zone, thus reducing tariff barriers and easing the export-import processes.
2. Focusing on cross-border development and ease of access, as discussed in the World Economic Forum, to make sure the business expansion aligns with the principles of inclusive international cooperation, linking climate, trade, and sustainable development.

These strategies acknowledge the significance of Mexico's shift towards free trade policies and its current economic integration with the U.S., thereby offering businesses an opportunity to tap into an established supply chain infrastructure.