The Gloom Behind The Boom

Fernando Wachnovetzky, a Mexican who makes teddy bears, doesn't share President Carlos Salinas de Gortari's enthusiasm for free trade with the United States and Canada. Ever since Mexico opened its protected economy to outsiders in the late 1980s, many smaller businesses like Wachnovetzky's have struggled with the new competition. Shortly after higher-quality U.S. imports started to pour in, a third of the companies in Mexico's toy industry went belly up. As for Wachnovetzky's firm, it has...
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