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The Role of NAFTA in the Success of Walmart

Read the case study "Walmart Goes South" and respond to the following questions:

How much of Walmart's success is due to NAFTA, and how much is due to Walmart's inherent competitive strategy?

Discuss some of the some of the positive effects of Walmart's success in Mexico and some of the negative effects.

Faced with going out of business, what steps did Comerci take to remain competitive?

What other steps do you think Comerci should take to secure its future and further compete with Walmart's operations in Mexico?


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Here are some facts from the article for each of the discussion points and some links to articles to help you form your opinions on these discussion questions.

1) NAFTA reduced tariffs on American goods sold to Mexico from 10 to 3 percent. Nafta allowed for companies to begin building maunufacturing plants in Mexico, thereby reducing shipping costs and tariffs for Walmart when they did not have to import goods to Mexico anymore. Walmart used the advantages of NAFTA better than its competitors. Instead of pocketing the differences the lower ...

Solution Summary

Analysis of a specific case study on Walmart's competitive outsourcing method.