Daily News Article - May 17, 2012
1. What types of jobs are aerospace companies keeping in the U.S. while moving their factories to Mexico?
2. Aerospace companies are moving their factories to Mexico as a way to acquire cheaper labor. The fact is, many American manufacturing companies are moving their factories out of the U.S. to reduce their production costs to make their products more competitive on the global market. Explain how moving the factories to Mexico as opposed to China benefits the U.S. job market.
3. Why are 6 million U.S. jobs dependent on trade with Mexico?
4. a) Define intellectual property rights.
b) How does a U.S. company better protect its intellectual property rights by opening factories in Mexico vs. China?
5. Describe 3 additional factors that cause companies to locate their manufacturing jobs in Mexico.
6. CHALLENGE QUESTION: Jesus Mesta-Delgado, president of Index Chihuahua, the city's business group said: "By investing in operations, jointly or directly, in Chihuahua, a company can become stronger and more competitive on the global market by producing at a lower cost." (foreign companies pay factory workers in Mexico approximately $6 an hour)
How can this low salary be a benefit for Mexican workers?
7. Mostly all of the news reports from Mexico are related to multiple murders and other violent crime associated with drug cartels. Do you think the media should try to report more positive news stories like this one? Explain your answer.
8. Is this an encouraging news story to you? Explain your answer.