1. What Was The Initial Impact Of NAFTA On The US
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NAFTA’s initial impact on the U.S. and Mexican automobile markets was a significant growth in low-priced auto imports from the United States to Mexico.
The Mexican consumer benefited most from the low-priced auto imports.
2. How did the impact of NAFTA start to change location decisions by automobile manufacturers over the years? How did this start to impact automobile production in Mexico and the United States?
Location decisions by automobile manufacturers over the years showed that automobile manufacturers were locating new facilities in Mexico. The location decision was significantly influenced by reduced labor costs, as
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