Answer to Question #53429 in Economics for LENNY

Question

Based on the article Nearshoring in Latin America, what are the short- and long-term implications of nearshoring given the current economic conditions?

Watch Silicon Border video and discuss why businesses should consider moving to Silicon Border. What are some of the drawbacks that companies moving to Silicon Border should be aware of and need to manage? (site is siliconborder.com)

What are the implications of the above article and video for countries in Eastern Europe in relation to multinationals operating in Western and Northern Europe?

Answer 1

Based on the article Nearshoring in Latin America, nearshoring manufacturing makes sense for a variety of reasons. Here are some factors currently influencing corporate leaders' decisions.
Rising U.S. labor costs and access to the Chinese labor market were primary drivers for companies' initial movement to China.

Silicon Border Holding Company, LLC is a unique commercial 40-square-kilometre (9,900-acre) development tailored to the specific needs of high-technology manufacturing located in Mexicali, along the western border of the United States of America and Mexico. This industrial park, which began in 2004, is transforming Mexicali into the world's next semiconductor manufacturing center.
Silicon Border is providing Mexico with an infrastructure that enables high-tech companies anywhere in the world to move manufacturing operations to the country and exploit its competitive advantages such as geographical location, human capital, research, legal and tax benefits, intellectual property, international treaties and logistics provided by the country for manufacturing high technology products while allowing research to develop processes, design, fabrication and testing able to compete with Asian operations and costs.

The implications of the above article and video for countries in Eastern Europe in relation to multinationals operating in Western and Northern Europe is that Silicon Border cooperates with the companies all over the world.