Can you move from MANILA to UGANDA in the shortest time?

You need to follow below rules:
Rule-1: You can change up to 3 alphabets at a time.
Rule-2: New word must be of 6 alphabets.
Rule-3: New word formed must be a country or capital.

It is icy and cold morning in the Mexico.

Mr. Jacob, a school bus driver arrived to pick the kids from the last stop. Jacob suddenly remembers that he needs to pick one more student 2 km to the north. Mr. Jacob lost his compass, but minutes later he able to presume that he is moving in the right direction i.e. north.

How did he know he is moving in the right direction ?

Jacob went with his girlfriend Melony in a magic show.
At the start of the show, the magician tells the crowd that he is known for his famous magic when he stands under water for 8 minutes.
Jacob instantly replied that he can do the same for 10 minutes and without the use of any equipment.
The magician challenged Jacob and promised that he will give Jacob $5000 if he can do the same.

Jacob won the challenge. How?