The Case of the Plant Relocation
| Type | Citation | Sources | Views | Words | Pages | Essay # |
|---|---|---|---|---|---|---|
| Term Paper | APA | 4 | 73 | 2786 | 10 | 68048959 |
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...... According to the companys outsourcing consultant, relocating to Mexico would solve several problems for Electrocorp. Relocating to the area would surely solve the companys wage problem. At a wage of $15 an hour, Electrocorp is struggling to pay salaries primarily because of union negotiation. For about $3 a day, however, workers in Mexico are happy to perform the same work, and the absence of unions and minimum wage laws makes the offer even more attractive to companies who are struggling to survive because of large salaries. Though the company must worry about workers fleeing to work for better wages in the United States, Frank J. Casale argues that Mexico is producing large numbers of workers that are both educated and bilingual. For this reason, though Electrocorp may have to worry about rapid turnover, they will not have to consider a shortage of workers (2006)
According to Casale, Mexico also has a government base that makes it an attractive environment for United States outsourcing (2006). Students of International Relations and Foreign Policy note that the Mexican and American governments have shared a unique relationship for many years. The Mexican government is dependent on the United States government for many of
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