Question
In: Economics
What are two ways Trump closing the Mexican border can affect businesses?
What are two ways Trump closing the Mexican border can affect businesses?
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Expert Solution
The increasing concern over illegal migration of Mexicans into USA made president Trump think of shutting down the border for Mexicans .The ways in which the business between the countries may get affected are 1)firstly the border cities get badly affected owing to lack of entrance to goods .Cities like El paso ,Laredo ,San diego will be the most affected,if Laredo port is closed for Mexicans then their trade to US (above 45% of the total) will be stopped which affects the trading relations between the nations .2)the agricultural sector in both countries gets affected if the mutual trading is stopped .3)experts fear that closure of border may impact the automobile industry and this crisis would spread all over the world (in auto mobile manufacturing spare parts from Mexico are being used ,if this stops the US can't handle the pressure all of a sudden).4)if the closure is immanent we are risking the lives of millions in terms of jobs ,income etc .As a result per capita income would be affected as a whole.
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