Wilcox-IB-SP10-A2 - How is the implementation of NAFTA...

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How is the implementation of NAFTA affected Wal-Mart's success in Mexico? Much can be said about how much of an affect the North American Free Trade Agreement (NAFTA) has had in the success of Wal-Mart operating in Mexico. NAFTA was signed into agreement on January 1, 1994 to better help the trading between the United States, Canada, and Mexico. One of the most important aspects of Wal-Marts success was the encouragement from NAFTA towards Mexico to improve its transportation infrastructure. By fixing their transportation infrastructure Wal-Mart was able to capitalize on the much smoother logistical system. NAFTA also was put in place to eliminated tariffs between all three countries in North America. By not having to pay tariffs Wal-Mart was able to cut costs but instead of just filling their pockets with larger profits Wal-Mart turned around a passed on those savings to its customers and was living by their motto which is “Everyday Low Prices.” (Daniels, et al 309-312) How much of Wal-Mart's success is due to NAFTA, and how much is due to Wal- Mart's inherent competitive strategy? In other words, could any other U.S. retailer have the same success in Mexico post-NAFTA, or is Wal-Mart a special case? About half of Wal-Mart’s success is due to the forming of NAFTA, and the other
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This note was uploaded on 12/18/2010 for the course BME 251123 taught by Professor Grimmer during the Spring '10 term at SUNY Albany.

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Wilcox-IB-SP10-A2 - How is the implementation of NAFTA...

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