4-6 Free Trade NAFTA: North american free Trade As greement Abolishes most tariffs on goods traded between Mexico. Canada and the U.s Allows unrestricted cross-border flows of resources Many U.s. firms have now invested in Mexico This is a manufacturing opportunity. Wage costs are lower in Mexico Can serve Mexico with a plant in Mexico and reduce freight o Managers face new opportunities and reats。 " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 4-6 Free Trade NAFTA: North American Free Trade Agreement. ◼ Abolishes most tariffs on goods traded between Mexico, Canada and the U.S. ◼ Allows unrestricted cross-border flows of resources. ◼ Many U.S. firms have now invested in Mexico. ⚫This is a manufacturing opportunity. ◼ Wage costs are lower in Mexico. ◼ Can serve Mexico with a plant in Mexico and reduce freight. ⚫Managers face new opportunities and threats