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Originally Posted by Vendzilla
Or the US made trucks that are assembled in Mexico? Why do we give them the jobs when they are giving us the workers?
Even Hilary when running for president said it needs to be rewritten
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The parts are made all over the world and shipped to Mexico because of labor & shipping costs. First, that means free trade coming in, from Mexico, thus money is saved. Second, parts aren't always covered under free trade, but manufacturing is, thus they put them together for us so we can do the trade.
And if we didn't have a trade agreement with them, the labor costs are so vastly different that it would still be beneficial to setup labor shops in Mexico, even more so when they have all the parts coming to them.
Logistically, Mexico is much more central, thus much cheaper shipping costs per unit. Now you can ship each part directly, costing you more per part + tax, or send it to a much more central place that is cheaper, put it together cheaper, ship in larger containers cheaper, and save yourself a f'in ton of money.