Share Renewable Energy Renewable Energy is one of the most read about and discussed topics in the world however various misconceptions remain about the advantages and disadvantages of renewable energy. Note Renewable Energy is a a very large topic and encompasses many different alternative energy forms which have their own distinct pros and cons.
Pinterest American businesses in Mexico have recently been a major topic of political rhetoric. For investors and business owners, there are more practical questions to ask. The immediate advantage of manufacturing in Mexico is reduced costs.
Labor costs are dramatically cheaper than they are north of the border.
Even for industries that rely heavily on Mexican migrant labor, it is usually cheaper to hire labor in Mexico itself. Much of the immigrant Mexican labor force in the United States is unskilled.
This hides a fact that many businesses have taken advantage of.
Moreover, within Mexico, the uncertain legal status of workers is not an issue. There are also considerable potential savings in other inputs. Mexico is a more business-friendly environment in terms of environmental and safety regulations. Permitting requirements are much cheaper.
Mexico is plagued by violence from drug traffickers and other paramilitary criminal operations. In some regions, such as Chihuahua or Sinaloa, the ensuing violence has reached failed-state levels.
This is not simply a matter of hiring private security for a plant: Note that this is a regionalized issue: Other disadvantages of manufacturing in Mexico include translation costs and corruption. These are the pros and cons of doing business in Mexico: Finally, there is the current political environment in the United States.
Businesses manufacturing in Mexico face considerable uncertainties in terms of taxes and tariffs. The legal implications of moving business to Mexico are, at the moment, hard to foresee. This is a high-risk situation, and investors need to weigh the pros and cons of doing business in Mexico in light of current US politics.
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