Why carmakers have the most to fear from protectionism

This article clearly shows the importance of Government policies on International Business.

Cost reduction has been one of the most important strategies adopted by car manufacturers companies in order to build parts in different countries at cheap price. This has been possible thanks to trade agreements between countries.

Mexico is considered a strategic country for building car parts, so important that US companies which used this strategy has been called “maquiladoras industries”.
In the US, President Trump has pledged to hike tariffs on US cars made abroad and Ford motor company, scrapped the plan to build a new plant in Mexico.

To what extent you think Trump’s protectionist policies will affect the car manufacture industry?

Read the full article below in the link:

http://www.bbc.co.uk/news/business-38570387

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