Parts with passports: how free trade drives GM's engines

Discussion in 'Economics' started by Banjo, Nov 18, 2019.

  1. Banjo


  2. This is all part of NAFTA and GATT. >50% of world trade is done internal to multinational corporations. For example, Ford will send a part over to its factory in Mexico (a low wage country) for assembly, then have the assembled product sent back to the US (higher value country) for sale. Both transfers are considered "trade", even though they were internal to the company. Look up "Transfer Pricing." It's a large tax loophole for multinationals.
    Last edited: Nov 18, 2019
    MrKJoe likes this.