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Presents a major decision that General Motors Corporation had to make as to the future of its operations in Mexico in January 1985. There were a lot of uncertainties at that time regarding both the condition of the Mexican economy and General Motors de Mexico''s marketing possibilities, competitive position, etc. The teaching objectives are 1) To give students an exposure to strategy problems in an international context; 2) To give students experience in identifying issues that cross disciplinary lines, including economics, finance, management, marketing, government regulation, competitive analysis, and labor relations; 3) To illustrate the kinds of problems that can arise in a less-developed country when the host government begins a major shift in its development policies (from import substitution to export promotion); 4) To give students experience in analyzing a complex and rapidly changing foreign environment from a foreign investor''s viewpoint.