Auto Inc. is located in the U.S. and produces parts for automobiles, which are then shipped to a plant in Mexico for assembly. The final product, the finished automobile, is exported back to the U.S. for sale. Your client Auto Inc. fulfills its part of a contract, shipping 300,000 parts to Mexico. The plant in Mexico manufactures the automobiles but does not pay Auto Inc. for the parts.

Consider the above case from Week 2 Discussion Question 1 where the automobile parts made in the U.S. were shipped to Mexico for assembly into automobiles.

• What provisions of NAFTA make this arrangement possible?

Consider that an automobile manufacturing plant in South Korea wants to take over Mexico’s operations and move them to South Korea.

• What rights would Mexico have under NAFTA to prohibit this action, if any?

Support your answer with appropriate reasons.

Describe the European Union (EU) branches of government. Are these similar to the U.S. branches of government? Is the EU a type of regional democracy? Are the citizens of the member countries represented in the EU government as the citizens of the U.S. are represented in the federal government? 

Discuss the types of laws in the EU: directives and regulations. What is the difference between them? Provide an example of a directive and a regulation in your answer.