Business Environment and Trade: The International Landscape

Do you know what this agreement is called?

USMCA

Now, there is another trade agreement that exists which the US is involved in. This agreement is between the US, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. Do you know what this agreement is called?

CAFTA-DR

If Be-Wiser raises the price of their product, then which business-environment factor could this directly impact?

Competitive

After the breakout session, you are reviewing what you learned about the different levels of economic integration. You've come to the conclusion that the following trade agreement is the most comprehensive and integrated:

E.U.

From what you already know about international trade and market entry, building a factory in Mexico is an example of what type of foreign entry?

Foreign direct investment

Trade Savvy

Lower labor costs, the USMCA, and the proximity to the United States

a major reason that Mexico is appealing is because of the lower labor rate. However, there's more to it than the cost of labor. As you know, the labor rate in China is also much lower than in the United States. What else makes Mexico an appealing choice for investment?

Mexico is a member of USMCA.

What business-environment factors needs to be monitored and assessed in order to deal with corporate tax rates?

Political and Legal

You scan the crowd and notice that the Regional Manager from Mexico, Rojelio, has not arrived yet.  You've been waiting to meet Rojelio in person for months, since you've been working with him via email and phone calls.  You consider that his late arrival to the meeting may be due to which factor in the business environment?

Socio-cultural

Which factor of the business environment would the company be involved in by considering this dramatic change to their manufacturing process?

Technology

Yes, I have been part of the EU for years now. So let me ask all of you this, so I know where your knowledge level is at here, which of the following descriptions of the E.U. is the most appropriate?

The E.U. includes most European countries. It is considered a customs union. Goods and capital can move freely among the E.U. countries. Most of the countries use the euro as the common currency.

Although the agreement is not designed to create a free-trading zone, it did create a way for countries to lower trade restrictions with each other in order to open up market opportunities. What is the name of this trade agreement?

The Trans-Pacific Partnership (TPP)

The entire group is back together, and Teresa is taking the podium.

The cost of labor is much lower in Mexico.

Which factor in the business environment does Be-Wiser need to address in order to stay abreast of minimum wage changes?

legal