Yes this is exactly what would lead to a downfall.
Latin American countries, excluding Chile, Uruguay, and Argentina, have people willing to work for peanuts while the US has epople who want a high minimum wage. Like Argentina, Uruguay, and Chile, the US has laws that "help workers" by removing their job possibilities. Any company would want to invest in a country where they can make stuff dirt cheap and pay stuff to people. Mexico has people like that which is most probably why they wanted to make the factory there in the first place. If this sort of thing keeps up, the companies would probably, like they did here due to protests and government bills, abandon the country and settle elsewhere where they can continue to obtain dirt-cheap workers in third-world countries.
