Global Economic Cost Essay

solar apex Motors- is currently one of the primary US car producers in Mexico, aiming to be espouse one of the worlds largest automobile producers in the international market. Aside from the s maintenance goal, upside is in any case essay to provide their customers with more and better vehicles non to mention the eagerness of the worry of apex of the suns way to experience high positiveness and greater market sh are. In order to fulfil the s uphold goals, one possible avenue would be to have a comparative favor over their competitors through put to developing countries which could supply the conjunction with needed resources.Currently, the play a longsighted has a manufacturing sow in Nuevo Laredo, Tamaulipas in Mexico that produces the Quattro engine- known for its lightness and high qualification implementation (Associatedcontent. com, 2007). Acme Motors uses one process to develop cars instead of having all(prenominal) engineering center operate under different p rocess. The reason wherefore Acme established the manufacturing plant of automobile engine in Mexico would be for them to utilize the bargain-priced terms of labor of the said country not to mention the lax policies of the Mexican political relation in terms of die bafflingers security.With the cheap labourers available in the economy of Mexico, Acme was able to minimize their functional cost, thus, improving their profitability or the level of potential product that they could execute. At the end of the day, Acme will have a comparative advantage over their competitors in the domestic and international market since they could either demoralise down the prices of their automobiles to attract more customers or offer incentives to loyal customers as well as further expand the operation of the business with the aid of the capital that the attention saved from the cheap costs of labor in Mexico.In this regard, the operation of Acme in Mexico has been of great help for the tel ephoner to enjoy impressive growth for the past years of its operation in the market. Globalization made a great avenue for multinational firms to look at comparative advantage that later on benefits their consumers and stakeholders in a frequent sense (The Globalization Website, 2001) But the big question would be did the confederation consider the wellbeing of their workers in Mexico in terms of salary and running(a) hours? How ab break through the benefits of the workers, did they receive any benefits from the vigilance?These are the questions that are currently being thrown over the management of Acme. Are they true? permit us find out. Acme belongs to the so-called Maquiladora which means Mexican industrial plants that assembled imported components into finished products for export. Maquiladora has been known for abusing their workers through paying a in truth low wage on the latter not to mention the long hours that they have to work which is equivalent to 14 hours a da y (Bacon, 2000). This agreeable of practice already abuses the human rights of their workers as well as violates the Mexican labor law for not appropriateing workers to establish joins.With the said above issue, Acme has a different case for, even if they are one of the Maquiladora, they place the kinship of the management and their workers. Acme do not allow the workers to work 14 hours a day just like any former(a) ordinary members of Maquiladora do to their employees in order to give counselling for those who are working student and/or to give ample rest for their workers. Moreover, Acme pays their workers right based on what is dictated by the law as well as based on the company policy which is also being implemented to other branches of Acme around the globe.At this point, the management of Acme ensures to every constituents of the company that they put premium on the welfare of their workers and employees for they believe that the latter is not a tool of the company in r eaching their goal, rather, a ramifyner in every step of the way to achieve the goals and objectives of the management. With regards to the formation of labor union, based from what I have discovered from the given situation, it would be beneficial on the part of the management to allow our workers there in Mexico to establish a labor union in order to put back their morale and productivity.If the management will not consider this alternative, then, there is a great possibility that the productivity of the sinless production area will significantly down. Furthermore, there is no elbow room for the management to get afraid of the formation of the said labor union since we are all confident that we abide on any government policies of our host country as well as we put appreciate on our relationship with our workers.By the time the productivity of our workers improves, the adverse stamp of the policy of the Mexican government regarding the purchasing of the majority of our raw m aterials should come from Mexican suppliers on our profitability level will be neutralized. With the aid of NAFTA, multinational companies like Acme could now select the location of their production area based on the influence of various business factors.This scarce tells us that NAFTA made it easier for us to find strategic locations for productions that would give the company competitive advantage over our competitors as well as to seemly the market demand of our target market. In the short run, operational cost of the company will surpass the revenue level since the company has to post on fixed asset in order to establish a manufacturing plant in Mexico. But in the long run, this investment of Acme in Mexico will surely give them an avenue to increase their sales, profitability and market share.With the few months of hands on observation regarding the degrading performance of our workers, I have realized that it would be detrimental on the part of the company to ignore the voi ces of the workers and deprive them of expressing what they feel regarding the current policies that the management implements. coming together halfway would be the best solution to boost again the morale of the workers as well as their productivity. It would also be beneficial for the company to give them the intended wage rate to inspire them to work hard and have the feeling of being part with the progress of the company.Through this, workers and the management itself will surely have a harmonious working relationship that later on contributes to the attainment of goals and objectives of the company. At this point, let me stress out that at the end of the day, the safest and stiff way of having a profitable, efficient and effective business operation would be to hear the voices of workers and consider their welfare so as to give them the message that the management treasures their workers.ReferencesAssociatedcontent. com (2007). Acme Automotives The Objectives and Interest. Ret rieved January 28, 2008, from http//www. associatedcontent. com/article/507171/acme_automotives_the_objectives_interests. hypertext mark-up language Bacon, D. (2000). The Story of a Maquiladora Worker. Retrieved January 20, 2004, from http//detagreens. tripod. com/maquiladora. htm The Globalization Website (2001). Globalization Debates. Retrieved January 7, 2004, from http//www. sociology. emory. edu/globalization/debates. html pagan