Chinese companies are using Mexico as a smart place to set up shop and sell their products in the US. They do this to avoid the taxes and restrictions that the US puts on goods from China. One example is a company called Man Wah Furniture. They built a factory in Monterrey, Mexico using money from China. By doing this, Chinese companies can save money on shipping and make products that are considered Mexican, so they don’t have to pay the US taxes. This is good for Mexico because it helps their economy grow. In fact, their exports went up by 5.8% in 2021. This trend is expected to keep going because of the trade war between the US and China. Mexico is in a good spot because it’s right in the middle of these two big countries. It has become the US’s main trading partner instead of China. Some US companies are also moving to Mexico to be closer to the US market. But people are worried about Mexico getting caught up in the fight between the US and China. They think Mexico needs to have a plan to deal with this situation. Even though there are some problems, some people are still hopeful about the trend of moving businesses to Mexico. They think Mexico can benefit from being so close to the US.

Original news source: How Chinese firms are using Mexico as a backdoor to the US (BBC)

🎧 Listen:

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📖 Vocabulary:

Group or Classroom Activities

Warm-up Activities:

– News Summary

Instructions:
1. Divide the class into small groups.
2. Give each group a copy of the article.
3. Tell the groups that they have 10 minutes to read the article and create a summary of the main points.
4. After 10 minutes, have each group share their summary with the class.

– Opinion Poll

Instructions:
1. Write the following question on the board: “Do you think it is a good idea for Chinese companies to set up factories in Mexico to avoid US taxes?”
2. Divide the class into pairs or small groups.
3. Instruct students to discuss the question and share their opinions with each other.
4. After a few minutes, have each pair or group share their opinions with the class.
5. Facilitate a class discussion, allowing students to express their opinions and provide reasons for their answers.

– Vocabulary Pictionary

Instructions:
1. Write a list of vocabulary words from the article on the board.
2. Divide the class into pairs or small groups.
3. Give each pair or group a piece of paper and a pen.
4. Instruct students to take turns choosing a vocabulary word and drawing a picture to represent it.
5. The other students in the pair or group must guess the word based on the drawing.
6. After a set amount of time, rotate roles so that each student has a chance to draw and guess.

– Pros and Cons

Instructions:
1. Divide the class into two groups.
2. Assign one group to discuss the pros of Chinese companies setting up factories in Mexico, and the other group to discuss the cons.
3. Give the groups a few minutes to brainstorm and write down their arguments.
4. Have each group present their arguments to the class, taking turns between the pro and con group.
5. Encourage students to respond to each other’s arguments and engage in a respectful debate.

– Future Predictions

Instructions:
1. Ask the class to think about the future of Chinese companies setting up factories in Mexico.
2. Divide the class into pairs or small groups.
3. Instruct students to discuss and make predictions about what they think will happen in the future.
4. Encourage students to consider the potential impact on Mexico, the US, and China.
5. After a few minutes, have each pair or group share their predictions with the class.
6. Facilitate a class discussion, allowing students to compare and discuss their predictions.

🤔 Comprehension Questions:

1. Why are Chinese companies setting up factories in Mexico?
2. How does setting up factories in Mexico help Chinese companies save money?
3. How has Mexico’s economy been affected by Chinese companies setting up factories there?
4. What has happened to Mexico’s exports as a result of Chinese companies setting up factories in the country?
5. Why is Mexico considered a good location for Chinese companies to set up shop?
6. Why are some US companies also moving to Mexico?
7. What concerns do people have about Mexico’s involvement in the trade war between the US and China?
8. Despite the concerns, why are some people still hopeful about the trend of moving businesses to Mexico?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

Chinese companies are using Mexico as a smart (1)______ to set up shop and sell their products in the US. They do this to avoid the taxes and restrictions that the US puts on goods from China. One example is a company (2)______ Man Wah Furniture. They (3)______ a factory in (4)______, Mexico using money from China. By doing this, (5)______ companies can save money on shipping and make products that are (6)______ Mexican, so they don’t have to pay the US taxes. This is good for Mexico because it helps their economy grow. In fact, their exports went up by 5.8% in 2021. This (7)______ is (8)______ to keep going because of the trade war between the US and China. Mexico is in a good spot because it’s right in the middle of these two big (9)______. It has (10)______ the US’s main trading partner instead of China. Some US companies are also (11)______ to Mexico to be closer to the US market. But (12)______ are worried about Mexico getting caught up in the (13)______ between the US and China. They (14)______ Mexico (15)______ to have a plan to deal with this situation. Even though there are some problems, some people are still hopeful about the trend of moving (16)______ to Mexico. They think Mexico can benefit from being so close to the US.
Go to answers ⇩

💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What do you think about Chinese companies setting up factories in Mexico to sell products in the US?
2. How would you feel if you were a Mexican worker at one of these Chinese factories in Mexico?
3. Do you think it’s fair for Chinese companies to avoid taxes and restrictions by making products in Mexico?
4. Why do you think Mexico is a smart place for Chinese companies to set up shop?
5. How do you think the trade war between the US and China is affecting Mexico?
6. Do you think Mexico should be worried about getting caught up in the fight between the US and China? Why or why not?
7. What do you think Mexico can do to deal with the situation of being in the middle of the US and China?
8. How do you think the trend of moving businesses to Mexico will benefit the country?
9. Do you think it’s a good idea for US companies to also move to Mexico to be closer to the US market? Why or why not?
10. What are some potential problems that could arise from Chinese companies setting up factories in Mexico?
11. How do you think the Mexican economy will be affected by the increase in exports?
12. Do you think it’s important for Mexico to have a plan to deal with the situation of being in the middle of the US and China? Why or why not?
13. How do you think the trade relationship between Mexico and the US will change in the future?
14. Do you think it’s fair for Mexico to become the US’s main trading partner instead of China? Why or why not?
15. What are some potential benefits and drawbacks for Mexico in being so close to the US?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. restrictions
2. economy
3. exports
4. trend
5. trade war
6. partner
7. factory
8. shipping
9. taxes
10. benefit
11. avoid
12. situation
13. expected
14. hopeful
15. plan

Meanings:
(A) A building where products are made
(B) To stay away from something
(C) A conflict between countries about buying and selling goods
(D) Rules or laws that limit what you can do
(E) Believed to be going to happen
(F) A detailed proposal for doing or achieving something
(G) A general direction in which something is developing or changing
(H) Someone you work with or do business with
(I) An advantage or profit gained from something
(J) The process of transporting goods
(K) Feeling positive about the future
(L) Goods sold to other countries
(M) Money paid to the government based on income, sales, etc.
(N) The system of money and business in a country
(O) A set of circumstances or state of affairs
Go to answers ⇩

🔡 Multiple Choice Questions:

1. Why are Chinese companies setting up factories in Mexico?
(a) To increase shipping costs
(b) To avoid taxes and restrictions from the US
(c) To pay higher taxes in Mexico
(d) To decrease their profits

2. How does setting up factories in Mexico benefit Chinese companies?
(a) They can avoid taxes from China
(b) They can increase their profits
(c) They can access cheaper labor
(d) They can save money on shipping

3. How has Mexico’s economy been affected by Chinese companies setting up factories?
(a) It has caused their exports to decrease
(b) It has led to higher taxes for Mexican businesses
(c) It has helped their economy grow
(d) It has resulted in job losses for Mexican workers

4. Why are Chinese companies making products in Mexico?
(a) To increase their shipping costs
(b) To pay higher taxes in Mexico
(c) To decrease their profits
(d) So they can be considered Mexican and avoid US taxes

5. What has happened to Mexico’s exports in 2021?
(a) They have decreased by 5.8%
(b) They have increased by 5.8%
(c) They have stayed the same
(d) They have increased by 10%

6. What is the main reason why Mexico has become the US’s main trading partner instead of China?
(a) Mexico has better products than China
(b) Mexico has lower taxes than China
(c) The trade war between the US and China
(d) The US has imposed restrictions on trade with China

7. Why are some US companies also moving to Mexico?
(a) To be closer to the US market
(b) To avoid taxes and restrictions from the US
(c) To increase shipping costs
(d) To pay higher taxes in Mexico

8. What are some concerns people have about Mexico getting caught up in the fight between the US and China?
(a) Mexico needs to have a plan to deal with this situation
(b) Mexico will benefit from the fight
(c) Mexico’s economy will collapse
(d) Mexico will become the new main trading partner for China

Go to answers ⇩

🕵️ True or False Questions:

1. Chinese companies are not setting up factories in Mexico to sell their products in the US and avoid taxes and restrictions.
2. Mexico’s strategic location between the US and China has made it the US’s main trading partner instead of China.
3. This trend is beneficial for Mexico as it helps their economy grow, with exports increasing by 5.8% in 2021.
4. While there are concerns about Mexico getting caught up in the US-China fight, some people remain hopeful about the benefits of businesses moving to Mexico.
5. The ongoing trade war between the US and China is not expected to continue driving this trend.
6. Man Wah Furniture is not an example of a Chinese company that built a factory in Monterrey, Mexico using money from China.
7. Some US companies are not moving to Mexico to be closer to the US market.
8. By manufacturing products in Mexico, Chinese companies can save money on shipping and avoid paying US taxes.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. Why are Chinese companies setting up factories in Mexico?
2. How does setting up factories in Mexico help Chinese companies avoid taxes and restrictions from the US?
3. How has Mexico’s economy benefited from Chinese companies setting up factories in the country?
4. What is the main reason why Mexico has become the US’s main trading partner instead of China?
5. What are some concerns people have about Mexico’s involvement in the trade war between the US and China?

✅ Answers

🤔✅ Comprehension Question Answers:

1. Why are Chinese companies setting up factories in Mexico?
Chinese companies are setting up factories in Mexico to avoid the taxes and restrictions that the US puts on goods from China.

2. How does setting up factories in Mexico help Chinese companies save money?
Setting up factories in Mexico helps Chinese companies save money because they can avoid shipping costs and also avoid paying US taxes by making products that are considered Mexican.

3. How has Mexico’s economy been affected by Chinese companies setting up factories there?
Mexico’s economy has been positively affected by Chinese companies setting up factories there. Their exports have increased by 5.8% in 2021, which helps the economy grow.

4. What has happened to Mexico’s exports as a result of Chinese companies setting up factories in the country?
Mexico’s exports have increased as a result of Chinese companies setting up factories in the country.

5. Why is Mexico considered a good location for Chinese companies to set up shop?
Mexico is considered a good location for Chinese companies to set up shop because it is right in the middle of the US and China. This helps them avoid the trade war between the two countries and makes it easier to sell their products in the US.

6. Why are some US companies also moving to Mexico?
Some US companies are also moving to Mexico to be closer to the US market. By setting up factories in Mexico, they can save on shipping costs and have easier access to the US market.

7. What concerns do people have about Mexico’s involvement in the trade war between the US and China?
People are concerned that Mexico could get caught up in the trade war between the US and China. They worry that Mexico may face negative consequences or be used as a pawn in the conflict.

8. Despite the concerns, why are some people still hopeful about the trend of moving businesses to Mexico?
Some people are still hopeful about the trend of moving businesses to Mexico because they believe Mexico can benefit from being so close to the US market. They see the potential for economic growth and job opportunities in the country.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) place
(2) called
(3) built
(4) Monterrey
(5) Chinese
(6) considered
(7) trend
(8) expected
(9) countries
(10) become
(11) moving
(12) people
(13) fight
(14) think
(15) needs
(16) businesses
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. restrictions
Answer: (D) Rules or laws that limit what you can do

2. economy
Answer: (N) The system of money and business in a country

3. exports
Answer: (L) Goods sold to other countries

4. trend
Answer: (G) A general direction in which something is developing or changing

5. trade war
Answer: (C) A conflict between countries about buying and selling goods

6. partner
Answer: (H) Someone you work with or do business with

7. factory
Answer: (A) A building where products are made

8. shipping
Answer: (J) The process of transporting goods

9. taxes
Answer: (M) Money paid to the government based on income, sales, etc.

10. benefit
Answer: (I) An advantage or profit gained from something

11. avoid
Answer: (B) To stay away from something

12. situation
Answer: (O) A set of circumstances or state of affairs

13. expected
Answer: (E) Believed to be going to happen

14. hopeful
Answer: (K) Feeling positive about the future

15. plan
Answer: (F) A detailed proposal for doing or achieving something
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. Why are Chinese companies setting up factories in Mexico?
Answer: (b) To avoid taxes and restrictions from the US

2. How does setting up factories in Mexico benefit Chinese companies?
Answer: (d) They can save money on shipping

3. How has Mexico’s economy been affected by Chinese companies setting up factories?
Answer: (c) It has helped their economy grow

4. Why are Chinese companies making products in Mexico?
Answer: (d) So they can be considered Mexican and avoid US taxes

5. What has happened to Mexico’s exports in 2021?
Answer: (b) They have increased by 5.8%

6. What is the main reason why Mexico has become the US’s main trading partner instead of China?
Answer: (c) The trade war between the US and China

7. Why are some US companies also moving to Mexico?
Answer: (a) To be closer to the US market

8. What are some concerns people have about Mexico getting caught up in the fight between the US and China?
Answer: (a) Mexico needs to have a plan to deal with this situation
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Chinese companies are not setting up factories in Mexico to sell their products in the US and avoid taxes and restrictions. (Answer: False)
2. Mexico’s strategic location between the US and China has made it the US’s main trading partner instead of China. (Answer: True)
3. This trend is beneficial for Mexico as it helps their economy grow, with exports increasing by 5.8% in 2021. (Answer: True)
4. While there are concerns about Mexico getting caught up in the US-China fight, some people remain hopeful about the benefits of businesses moving to Mexico. (Answer: True)
5. The ongoing trade war between the US and China is not expected to continue driving this trend. (Answer: False)
6. Man Wah Furniture is not an example of a Chinese company that built a factory in Monterrey, Mexico using money from China. (Answer: False)
7. Some US companies are not moving to Mexico to be closer to the US market. (Answer: False)
8. By manufacturing products in Mexico, Chinese companies can save money on shipping and avoid paying US taxes. (Answer: True)
Go back to questions ⇧