Mexico became a manufacturing mecca thanks, in part, to its inexpensive labor and proximity to the massive U.S. market. But there is a new reality on the ground in that country these days: a surge in violence tied to the prohibition-based war on drug traffickers that Mexico's President Felipe Calderon mounted after his election in 2006. The result has been a wave of kidnappings, extortion and murder that is threatening the country's economic health and causing multinationals to examine closely how they operate and invest in Mexico.
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