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Tag Archive 'government'

As our textbook illustrates, breaking down trade barriers between the US and Mexico has been extremely beneficial to both countries. Along the border, Mexico specializes in importing parts and materials, modifying them using inexpensive labor, and re-exporting them back to the United States. The US, on the other hand, specializes in using advanced technology to develop finished goods and services. Many of these goods flow back into Mexico. By lowering trade restrictions between the two countries, both have been able to profit.

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North Korea is an example of a country that employs a totalitarian system. Obviously, this is an extreme example, as North Korea has basically cut itself off from the rest of the world (excepting China in some part). One of the main benefits of operating in a business in a totalitarian system is that a manager does not have to worry about political pressure from the people. Generally speaking, if the government has allowed the company to operate in the country, it will most likely be able to continue doing so without interference. That being said, getting into the country may have exorbitant costs. For example, government officials may need to be bribed. Additionally, it is likely there will be backlash from the company’s customer in its home country.

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