The duties levied on the companies had also been relaxed between these countries. This program was called as ‘The Border Industrialization Program’. With the implementation of NAFTA called as North American Free Trade Agreement, Mexico manufacturing has tripled.

Earlier, Mexico attracted manufacturers who perform only simple assembling. But, later with the development in this industry many big shots with complex products started flowing in to Mexico. China attracted many inexpensive commodity manufacturing in world level. At this time, US were looking for a similar place like china which could produce low cost products. Mexico manufacturing proved as the exact solution for a situation like this. Many foreign firms started setting up their operations and manufacturing in Mexico.

Methods of implementation :
Mexico manufacturing companies used five common methods:

• Contract or sub-contract manufacturing – This method is a form of outsourcing where Mexico manufacturers manufacture products for another company. This method will be used for companies who like to drive down the production cost involved in setting up infrastructure.
• Joint venture – Two or more firms invest for a single manufacturing.
• Full-owned – As its name suggests, the whole capital and profit belongs to a single company.
• Shelter – In this method, a firm can operate manufacturing and assembly in Mexico without even having knowledge of the subsidiary.
• Outsourcing – This is almost same as contract or sub-contract, except that this method outsources people rather than products.

Advantages :
The price of the land marked as one of unique Mexico manufacturing companies’ advantage for its development. Unlike other developing countries, the land cost remain cheap in Mexico which attracted many manufacturing in Mexico. Many firms which require large engineering content preferred Mexico than to other countries. Its proximity to US also helped the manufacturing companies for coordinating activities. Products got manufactured soon as the raw materials were readily available nearby and the products got delivered in time because the markets were nearby.

Pharmaceutical Industry of the United States is prepared to spend 80 billion dollars over 10 years for the reform of American health care, which is being developed by the administration of U.S. President Barack Obama.
Democrat Senator Max Bokus has managed to negotiate with pharmaceutical associations on the bill on the reform to transfer part of program costs on the shoulders of businesses, passes Associated Press.
The agreement between the White House, lawmakers and the pharmaceutical industry should facilitate access to prescription drugs for millions of older Americans and reduce costs of the federal government.
B. Obama welcomed the agreement that was reached by the senator and pharmaceutical companies, describing it as a “turning point” in improving the national health system.
The current U.S. public health system, by the general view of American politicians, is imperfect and is in need of immediate reform. Approximately 46 million people in the country are not covered by a health insurance program, the budgetary costs of Medicaid and Medicare programs are growing at a daunting pace and the budget already has a huge deficit.
Congressmen, working on the reform bill, hope that the cost of the plan will not exceed 1 trillion U.S.

The Government of Germany and the authorities of the German lands, where the main businesses of Opel are located, approved the investment plan of Canadian-Russian consortium.
Magna and Sberbank claim for a controlling stake of Adam Opel GmbH, which combines Opel and its sister brand Vauxhall. Under the plan of Magna, General Motors will retain a share of 35% in the Opel, another 35% will have Sberbank, 20% – Magna, and the remaining 10% will be owned by Opel employees.
Capital infusions of new investors in Opel should make about 500-700 million euro. The industrial partner for Opel, as planned, will become “GAS” group. Canadian Magna International expects to complete the transaction for the purchase of Opel by September 2009.

It should be recalled that the German authorities approved the provision for the European Branch of the American auto concern General Motors – General Motors Europe bridge loan of 1.5 billion euros on 1 July this year.
With that German automaker Opel and British Vauxhall will continue to operate regardless of the bankruptcy of the American parent company. In the next five years, Opel plans to increase itsannual sales volume of cars up to 2 million units.