In this paper, I examine how the growth of offshore assembly in Mexico has affected manufacturing activity in U ….S.-manufactured components receive preferential tariff treatment upon reentry into the United States. Foreign assembly plants in Mexico, most of … Mexico increases the demand for manufacturing goods produced in U.S. border cities. Implications of the North American Free …

A theoretical model is developed and applied to the North American auto industry, motivated by the possibility of US-Mexico …. Using an applied GE model, we find that (A) the gains to Mexico are significant and the effects on the US and Canada are … North American multinationals determine markups, increased imports from Mexico do not result in a rationalization of US and …

This paper considers the likely effect on the automobile industry of a free trade agreement between the U.S. and Mexico …. As there are currently large restrictions on imports into Mexico, one important outcome of a free trade agreement would …