Globalism 2.0.  Episode  17:   

All In On Mexico… 

(Another ChinaPat presentation)

• The end of the story: If your supply chain / manufacturing is in China and you are planning to someday, definitely take a serious look at alternatives - then this is your day.
• Mexico is the default move for “near-shoring”. The no-brainer part ends there, though.   You have a lot of decisions to make and many, many new things to figure out. 
• Mexico is the classic "fast or cheap" type of economy.   You're running out of fast.

In this episode:

• All in on Mexico, but… The good news, the bad news, and the potential for a China presence.
• You are on your own. If you learned about China from expensed visits to the Canton Fair (4 Seasons), then you may be in a for a surprise. But as always in Mexico – that’s OUTSIDE OF MEXICO CITY.  (You’ll be hearing that a lot.)   But if you were early enough to China to have enjoyed some adventure business travel, then you may be in luck.
• Time is NOT on your side. The big MNCs are already here, doing manufacturing in a big way up north. No BRI deals for Mexico (the reason might surprise you), but there will definitely be a China Inc. presence in the neighborhood.

Protectionism Gets Ugly

1. Food protectionism.

• Remember – for every natural problem there will be a bureaucratic response that is potentially more dangerous and damaging.  Check your supply chain for vulnerabilities.

2. US prestige in no longer a question. It is falling. 

• Snubs from the South, confusion in Asia…  front line decision-makers from the US have to prepare for the era of No Soft Power. 

3. BEA in Mexico. Let’s talk about CRIME.

• Types of crime
• Crime and the front line decision-maker
• How YOU see crime vs. how MEXICANS see crime (in Mexico)

Globalism 2.0 Episode 15. Governments and Corporations Unite Against Consumers!  Saying the quiet parts about STATISM out loud. 

Also: BEA on Mexico – STEEPLE Analysis

This week Globalism2.0 looks at STATISM – the blurring of lines between states and corporations. Everyone’s doing it – but the US approach and Chinese approach LOOK different in the formative stages. End of the story – Statist actors from all over will get along just fine. In this episode:

• Comparing US and Chinese Statist behavior. Chinese actors are directed by the Party, while US policymakers and bureaucrats take their cues from corporate strategists. We’ll look at Cosco Shipping and Amazon as cases.
• Will the US disengage from China? Yes and No. Consumers will decouple – and pay higher prices for less variety as a result.  US-based MNCs (and those with good global networks) will NOT decouple (or even slow down their China investments).
• 360 Degree Analysis of Mexico. This week we continue our BEA (Business Environment Analysis), using Mexico as our case study. We introduce the STEEPLE framework as a simple tool for organizing research (and coordinating teams).