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1,) One reason for the American growth in Mexico is because of the inexpensive labor, whereas in America the price for working would be heartier. Another reason is, that the price of manufacturing American cars is a lot cheaper in Mexico.
2.) one impact of outsourcing is having on America it is making it easier  and less cost effective to place factories in other countries, like Mexico. This is because of how incredibly cheaper it is to place these hard-labor needed jobs in Mexico, or other countries.
3.) Outsourcing in Mexico has impacted its country by bring more jobs to the job market for more
people to fill in.

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1) cheap labor is the first reason for American automobile growth in Mexico. People who wok in Mexico receive lower incomes  because the cost of living is significantly lower. Manufacturing comes at a lower cost for US companies that outsource & export internationally. the lack of workers in Mexico is the second reason. Since Mexico is less developed, people do not have enough jobs and income to be able to provide for them and their families. This causes more people to be pushed to work in an industry.
2) outsourcing helps America because we can get goods and items at a lower price than usual because the certain items don't have to be shipped to the US. foreign companies are able to make a good profit while the US does not have to pay much.
3) Mexico will definitely see an increase in not only jobs but employment rates overall. This will increase the GDP of the country and ultimately it will bring many positive effects on the economy. The increase in GDP will also bring up the development rates in surrounding countries.

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1. One reason for American automobile growth in Mexico is that Mexico produces more. For example, in the Auto Production Popularity Contest, it is shown that Mexican production is 4.7% greater than Canadian production, making it a more valuable producing country. Another reason for American automobile growth in Mexico is Mexico's ports and trade agreements. In the USA today article it states that, "The domestic market continues to grow, and Mexico's ports and its trade agreements with 45 countries have helped establish it as a strong export hub to Europe and South America as well as the rest of North America". Because Mexico has greater international reach, and easier trade, companies want to be able to distribute from its ports.
2. An impact of outsourcing on America is that Americans pay less for goods. Workers in developing countries are often easier to exploit, meaning less money has to be spent on production.
3. An impact of outsourcing on Mexico is that there is less unemployment. In the Manufacturing Industry article it states that, "At the same time the number of people in manufacturing in developing countries exploded, with many of them working, directly or indirectly, for the same firms that were employing fewer people in rich countries".

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1. Identify and explain TWO reasons for American automobile growth in Mexico.
-  One reason for American automobile growth in Mexico is due to cheap labor. Even skilled laborers in Mexico receive a lower income because Mexico's cost of living is lower. Due to this American automobile companies are able to pay the workers less while producing  nearly the same amount  of automobiles and parts in areas where they would have to pay the workers much more. Another reason would be the amount of workers in Mexico as it is harder to find as much people willing to work in factories in America. Due to Mexico being less developed, people don't have sufficient jobs to provide for themselves and their family so more people are likely to work in industries.
2. Discuss ONE impact outsourcing is having on America.
-  Outsourcing helps America to obtain goods at a lower price because materials don't have to be imported to the United States  and foreign workers are often paid less. Companies are able to make a better profit while the products are cheaper for the U.S.
3. Discuss ONE impact outsourcing is having on Mexico.
-  More jobs will be available so the unemployment rate will decrease. Due to this, the GDP of the country will increase which will be beneficial as more people will be able to provide for their families. As the GDP increases, areas around the country will start to develop and people will be given a better education and healthcare.

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1. Identify and explain TWO reasons for American automobile growth in Mexico.
-  One reason for American automobile growth in Mexico is due to cheap labor. Even skilled laborers in Mexico receive a lower income because Mexico's cost of living is lower. Due to this American automobile companies are able to pay the workers less while producing  nearly the same amount  of automobiles and parts in areas where they would have to pay the workers much more. Another reason would be the amount of workers in Mexico as it is harder to find as much people willing to work in factories in America. Due to Mexico being less developed, people don't have sufficient jobs to provide for themselves and their family so more people are likely to work in industries.
2. Discuss ONE impact outsourcing is having on America.
-  Outsourcing helps America to obtain goods at a lower price because materials don't have to be imported to the United States  and foreign workers are often paid less. Companies are able to make a better profit while the products are cheaper for the U.S.
3. Discuss ONE impact outsourcing is having on Mexico.
-  More jobs will be available so the unemployment rate will decrease. Due to this, the GDP of the country will increase which will be beneficial as more people will be able to provide for their families. As the GDP increases, areas around the country will start to develop and people will be given a better education and healthcare.

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1.One reason for American automobile growth in Mexico is the fact that labor costs are low. With an abundance of workers along with giving said workers low wages, manufacturing is cheaper and easier for the U.S. companies that are outsourcing and having their products produced elsewhere. Another reason would be the fact that there would be lower transportation costs. Due to NAFTA and trade agreements, it is cheaper to import manufactured items from Mexico than it would be to do so from other countries.
2. Outsourcing could cause a spike of unemployment rates in America. With cheaper and more abundant labor in Mexico and other countries , jobs in America aren't needed, as American corporations seek out other countries to manufacture their goods.
3. In contrast to the effect outsourcing has on American people, Mexico may see an increase in jobs and employment rates. This will have positive affects on the economy and possibly the standard living of workers who are able to more stably provide for themselves or their family, especially if there are more agreements to strengthen labor laws .

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1.       The cost of manufacturing automobiles in Mexico is considerably lower, which is a reason for automobile growth, and another reason is because of labor costs as those in Mexico tend to be in poverty and they are desperate for an occupation. The companies who make automobiles do not have to pay as much due to the desperation, saving the company money.

2.       Outsourcing’s impact on America leads to an increase in unemployment rates in the states. This is due to businesses are leaving and no longer present in the area. They go to places like Mexico where it is cheaper to manufacture there.

3.       Unlike America, Mexico sees some positive impacts. More jobs are likely to be created, causing the unemployment rate to go down, and more and more people will get out of poverty.

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1. One reason for american automobile growth in Mexico is, cheaper production costs which is why the U.S. and many other countries outsource. Another reason is the abundance of available workers present In Mexico and other LDC's
2. Outsourcing has caused an increase in unemployment rates in America because many companies are moving factories to countries like Mexico for cheaper production costs. The movement of companies has left numerous people unemployed.
3. Outsourcing in Mexico has resulted in the a decrease in unemployment and has greatly affected Mexico's economy by increasing GDP and increasing quality of life overall

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1. One reason for automobile growth in Mexico is that they have many ports and agreements with other countries. They can easily get products to other countries by shipping them out from their many places of water access. Also, since they have agreements with other countries, they will have a cheaper fees for exporting. The second reason for automobile growth is the price of labor. There are many people in Mexico like bing in poverty who need jobs. The automobile companies won’t have to pay as much for people work in their factories, which saves them money.

2. The effect of outsourcing in America is a loss of money for everyone. First off, businesses are no longer in the area which causes them to lose money. They must ship their products farther and back into the United States. Secondly, American citizens are losing money. They also have to pay for some of the f the cost of shipping coming from a farther place. The workers who are citizens are losing their jobs that they had in factories in America which causes them to need financial help until they can find another job. This puts a burden on the government because they have to pay for more people to maintain a normal lifestyle. Overall, the country’s GDP will decrease and the amount of money in America will decrease on all levels.

3. In Mexico, there will be a positive effect of outsourcing. Building factories will bring more jobs to their country and raise their overall GDP. There will be less poverty and unemployment rates. The government will be able to help more people get out of poverty w it h the money they earned from new American factories. Their economy will begin to boom compared to the rest of North America. The overall standard of living in the country will be much better for everyone there.

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Maiya Robinson          1) The requirement of 40 to 45 percent of automobile parts that must be made by workers paid $16 an hour on average by 2023. This strengthens labor laws, particularly in Mexico, by allowing inspectors into facilities to investigate violations of workers' rights. There is also less funds required to make these products which allows more growth and opportunity for growth  

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Maiya Robinson          1) The requirement of 40 to 45 percent of automobile parts that must be made by workers paid $16 an hour on average by 2023. This strengthens labor laws, particularly in Mexico, by allowing inspectors into facilities to investigate violations of workers' rights. There is also less funds required to make these products which allows more growth and opportunity for growth  

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2) Job outsourcing in America is having an impact in which U.S companies are becoming more competitive in the global market. The selling to foreign markets is more flexible; these circumstances are also keeping labor costs low by hiring in emerging markets with a lower standard of living.
3) Outsourcing has lead Mexico to more than40 free trade agreements around the globe, which poses as a good look for them working with the U.S and the international marketplace.

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One of the reasons for American autombile growth in Mexico, is how cheap it is to produce it there. In Mexico workers don’t have nearly the amount of rights as in America, so they don't have to pay the workers nearly as much. This cheap labor allows the cars to be produced without having to put the profits toward paying wages. Another reason for the mass amount of American automobile factories is Mexico is the amount of workers. It’s hard to find factory workers in a country like America, where people can earn just as much money, by doing more ideal jobs. Many people in Mexico don’t have stable paying jobs, so they are able to get a stable job in these companies to provide for their families.

An impact on America by outsourcing is the loss in quality of goods. Instead of producing the products here, we are giving this responsibility to foreign people and the corporations have little to no control of factories and worker’s conditions. Using cheap material to produce mass quantities of goods can be long term unbeneficial for companies. The consumers may no longer rely on a company after their products begin to deteriorate. Losing many businesses in the process.

An impact on outsourcing from America to Mexico is that more and more people will have jobs. Their unemployment rates will begin to skyrocket, but at the cost of their sovereignty. They will be unable to become self reliant because of the foreign help they have received. It may be short termly beneficial, but the long term effects are definitely present.

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1) It is overall just cheaper to manufacture them there. Labor is cheaper in Mexico with an abundance in workers compared to America. You barely need to know anything to do it and most people are poorer so they will do it for any money. Another reason is because the materials are cheaper there then to outsource them to the US for us to make.
2) As factories in the corporations realize it is cheaper to have their factories in the Mexico, we lose more jobs in America. Causing our employment rates to go down just so corporations make more money. As we get a lower GDP, Mexico's rises.
3) Mexico has more people working and as there unemployment rates go down, less and less people are poor. They will have new jobs and their GDP will go up.

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1. MDC’s take advantage of the cheap labor costs in LDC’s as we can see with US outsourcing vehicle manufacturing factories to Mexico. That’s one reason Mexico has seen a recent uprise in American Automobile factories. Another reason is that developing countries generally have a large manufacturing job population compared to when they were not developed at all.
2. People are getting their jobs lost to automobile factory workers in Mexico. Big companies care more about money than they do their country so they’re willing to do anything to reduce labor costs.
3. Mexico will experience an increase in GDP since new job openings from the states are arriving. Not only will GDP be affected but demographic statistics like birth rate and death rate will change as the result of quick demographic transitions.

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1) One reason that American automobile growth has occurred in Mexico is the abundance of manufacturing workers in developing countries like Mexico. There aren't as many workers in manufacturing in richer countries, so corporations turn to poorer and less educated countries to find workers to create their products. Another reason is the fact that the labor is cheap. The companies get more workers for a lower cost than they would in more developed countries. The combination of many workers and low labor costs is some of the reasons American automobile growth happened in Mexico.
2) Outsourcing causes unemployment rates to rise in America as corporate greed causes companies to move their factories to less developed countries such as Mexico to obtain a cheaper way of manufacturing goods. Companies move factories, and the American men and women who previously worked in those plants are let go by the businesses and are left without a job.
3) Outsourcing benefits those in Mexico as jobs are created, as opposed to what happens in the USA. As factories move to LDC's, they open their doors to a rush on incoming workers looking to find a way to make money for themselves and their families. A farmer or unemployed person is able to come and work for higher wages in manufacturing products for big American businesses, and because of this,GDP per capita rises, as well as the quality of life. Citizens of LDC's benefit due to the fact that they are being given jobs from big name brands from the States.

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1) Automobile growth is occurring in Mexico as manufacturing them is much cheaper there. There are an abundant number of workers here as creating these manufacturing plants increases jobs, making it an excellent place for corporations to have automobile parts manufactured. We saw in the video that jobs being outsourced to Mexico have wages are 40% lower than manufacturing in other places such as China. This means it is much cheaper to manufacture in Mexico than in China, where many things are manufactured. Another reason for the growth of automobiles in Mexico is such short distances between them and the U.S. It is much cheaper for transportation costs of manufactured items in Mexico. Because of NAFTA, these manufactured parts are freely moved goods to the U.S., which means importing these goods is much cheaper between the two.

2) Outsourcing in America is leading to many companies moving their manufacturing plants to Mexico. Parts manufactured here can be produced much cheaper as the labor is cheap and moving these plants to other countries is changing people's jobs. People who once worked in these manufacturing areas in the united states lose their jobs as a result, and it creates unemployment. People's jobs are vanishing due to outsourcing to much cheaper labor in Mexico than in the United States.

3) We see more jobs created in Mexico as these manufacturing places are moved here, benefiting the economy as Mexico sees a 40% increase in auto jobs. According to the Center for Automotive Research, in 2014, $7 billion is for new projects in Mexico. This allows Mexico to develop a more robust economy as the sector of automobiles and manufacturing exports has helped Mexico's GDP growth.

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1.Identify and explain TWO reasons for American automobile growth in Mexico.
2. Discuss ONE impact outsourcing is having on America.
3. Discuss ONE impact outsourcing is having on Mexico.

NAFTA vs USMCA
Outsourcing and America

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The auto industry is looking south for new factories, and the farther south, the better.

Canada is struggling when it comes to retaining auto jobs, the U.S. is a house divided with most of the new automotive investment and jobs headed south of the Mason-Dixon line and Mexico is the auto industry darling.

The three countries are a united trading block under the North American Free Trade Agreement, or NAFTA, but they're fierce rivals in the boardrooms where auto executives decide where to invest in the latest equipment and additional jobs.

Of the vehicles built in North America last year, Mexico produced about one in five, or double the rate from 2004. WardsAuto, which tracks production data, expects the rate to increase to one in four by 2020.

"The U.S.' South and Mexico are winning the battle," said Dennis DesRosiers, president of DesRosiers Automotive Consultants near Toronto. "Over half the capacity and 80% to 90% of investment dollars are going to the U.S. South or Mexico."

Auto production popularity contest (Photo: Martha Thierry Detroit Free Press)

Conversely, he sees the Canadian auto industry dwindling to five automakers with a single assembly plant each over the next decade or two - or about half its current manufacturing footprint.

The United Auto Workers union is keeping a close eye on the flood of automotive investment migrating to Mexico. The issue is especially critical for the UAW this year as it seeks product commitments from the Detroit Big 3 automakers in negotiating a new contract for about 140,000 U.S. autoworkers.

The auto industry is global, but increasingly companies want to build in the region where they sell. Which means chances are your new vehicle will continue to be built in North America but may not be made in the U.S.A.

Back in 2004, 11.6 million vehicles were built in the U.S., or 74% of the 15.8 million industry total. Canada built 2.7 million, or 17% of the capacity; and Mexico contributed only 1.4 million vehicles, or 9%, according to WardsAuto.

In 2014, signs were evident the tide had turned.

Mexico's production had more than doubled to 3.2 million units, or 19% of the 16.9 million industry total. It came at the expense of the U.S., which dipped to 11.4 million units, or 67%; and Canada, which was down to 2.4 million, or 14%.

Mexico's surging automotive industry (Photo: Martha Thierry Detroit Free Press)

And the trend will continue. Wards forecasts new plants will add 1.2 million units of capacity in North America by 2020 and it is not evenly split.

Virtually every automaker is adding capacity in Mexico, including General Motors, Ford, Toyota, Honda, Volkswagen, Audi, BMW, Hyundai and Mazda.

The country is a "massive untapped market" that could grow by another 1 million to 2 million vehicles a year, DesRosiers said.

By 2020, Mexico is expected to build one in four vehicles in a North American industry of 18.6 million units. The U.S. will hold its own at two-thirds of the output, or 12.2 million vehicles. Canada is the big loser, down to 1.6 million vehicles and 9% of the output.

In 2014, automakers announced $18.25 billion in additional investments in North America. The breakdown: almost $10.5 billion for the U.S., $7 billion in new projects for Mexico, and a single $750-million project for Canada, according to the Center for Automotive Research in Ann Arbor.

That is on top of the 18 plants already in Mexico, and there are least five more planned or under construction. Mexico has seen a 40% increase in auto jobs since 2008 to 675,000 last year while the U.S. saw only a 15% increase in the same period to more than 900,000.

Mexico's auto plants (Photo: Martha Theirry Detroit Free Press)

The supply base also has improved its quality, said Haig Stoddard, industry analyst for WardsAuto. "The litmus test was when Toyota said it would build there," a reference to the company's strict standards.

The domestic market continues to grow, and Mexico's ports and its trade agreements with 45 counties have helped establish it as a strong export hub to Europe and South America as well as the rest of North America. By contrast, the U.S. has about 20 trade agreements, and Canada also has but a fraction of Mexico's pacts.

"Mexico bested us on trade agreements," said Sandra Pupatello, a former Canadian politician who now oversees business development for PwC Canada in Toronto as well as the Windsor-Essex Economic Development Corp. "They quietly have been negotiating trade agreements with the world."

In the U.S., northern states are gaining third shifts at existing plants while the South is getting investment in new plants and the thousands of jobs that come with them.

By 2019, the U.S. South will have about 5 million units of capacity, almost catching up to the North, where the Midwest is not expected to grow much beyond the more than 6 million now, said Michael Robinet, managing director of IHS Automotive Consulting.

That is astounding given the history of how the auto industry developed.

The U.S. auto industry started in Detroit more than a century ago and the predominance of General Motors, Ford and Chrysler were such that they became known as the "Big Three."

Production was centered in the Midwest and Michigan in particular - spilling over into neighboring Canada. It wasn't until foreign automakers decided to build in the U.S. that a new manufacturing base was established in the South. States such as Alabama, Tennessee and Georgia used incentives and a nonunionized workforce to attract automakers seeking a manufacturing toehold in the U.S.

"The U.S. will be fine, at least over the next five years," said Stoddard. "Production will stay here, especially of larger vehicles. There will be a lot of new capacity in the South, and it is needed. The North will hum along at current levels for the next five years."

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More car manufacturing jobs move south -- to Mexico

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The auto industry is looking south for new factories, and the farther south, the better. Canada is struggling when it comes to retaining auto jobs, the U.S. is a house divided with most of the new automotive investment and jobs headed south of the Mason-Dixon line and Mexico is the auto industry darling.