1) identify the type of business strategy that Mexico has pursued to create a comparative advantage in car manufacturing. Who is loosing? Who is gaining from this strategy? Why are so many non-U. S. automakers choosing Mexico for locating their factories? In Part 1 of your answer, include the concepts you have learned in Chapter 12 and the video tutorials in Week-by-Week. 2) As you have learned in Chapter 11 (global capital markets): "Typically, the cost of capital is lower in the global capital market than in domestic capital markets. Other things being equal, firms will likely prefer to finance their investments by borrowing from the global capital market. However, such borrowing may be restricted by host-country regulations or demands". In Part 2 of your answer, discuss the point or possibility at which foreign car manufacturers should consider using the global equity markets (ie., buying shares of companies from any country) to finance foreign (Mexican) investments and operations in instead of the global debt markets (ie., borrowing from banks or issuing bonds) . Are firms likely to encounter restrictions in the equity markets as well? What are the effects of such restrictions likely to be on a firm’s investment and operating decisions?