GLOBALIZATION MAY BE IN DANGER; FORD GAVEUP ITS INVESTMENTS TO MEXICO




İlknur Şebnem ÖZTEMEL – TDO –The second largest automobile producer in USA, Ford Motors, gave up its plans to build a 1, 6 billion dollars count factory in Mexico, for the production of sedans and created new business opportunity at home that brings 700 jobs. It has been claimed that officials were effected by Trump’s speeches as ‘’ doing investment at home’’. After the announcement, Mexican Peso lost value.

CEO of the firm, Mark Fields said that company’s policy change is caused mainly by tightening of American market for sedans. Also, he determined this as a vote of confidence for Trump. Fields said “We called the president-elect and the vice president-elect this morning and gave them the news. They were very pleased, obviously, that we were making these investments in USA”.

Recently, Trump wrote on his twitter page as ‘’ General Motors send Chevrolet Cruze to local shops without paying anything. Produce it in USA or pay the tax’’.

During his campaign President-elect Donald Trump called for the end of economic opening, especially for Asian states.  He argued by these kind of Liberal policies Americans lost job opportunities. One of his promises was to increase growth rate and GDP.

After the positive referendum on BREXIT, Donald Trump’s victory caused fluctuation in markets. Especially Mexican Peso influenced most as he promised to build a wall on US-Mexico border. His recent speeches made the situation worse. Together, these two events may lead to the weakening of economic Liberalism and Globalization.