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Why have Canada and us put more factories in Mexico?

Updated: 8/17/2019
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14y ago

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The United States and Canada are highly developed countries, while Mexico is not. This means a worker in the US would earn some 30-40 USD$/hour, while in Mexico the same worker would earn just 5-6 USD$/hour. This wage difference means a lot in savings for American and Canadian companies, who then "offshore" their production to Mexico and other countries with lower wages, such as Vietnam or China.

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Q: Why have Canada and us put more factories in Mexico?
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