GB511C Strategic Resources Management: Final Exam Essay

Huxley Manufacturing Company, a large firm in the defense industry, is considering a strategic move to shift production from its California plant to Mexico. Tariff reductions made possible by the North American Free Trade Agreement (NAFTA) opened up the potential to enjoy significant cost savings by shifting production south of the Mexican border.

Sector has been benefitted and improved access to working environment of U.S. The U.S manufacturing workers and smaller U.S manufacturers have lost business due to NAFTA as well as affected severely on poor Mexican

"In 1994, both countries [Mexico and the United States] signed the North American Free Trade Agreement (NAFTA) which has increased their mutual trade and foreign direct investment. Between 1994 And 2005, the US-Mexico foreign direct investment flows increased substantially from 16,968 billion to $71,423 billion. By 2007, the Mexican commercial relationship with the U.S. almost tripled from $297 billion to $930 billion." [2] This mutual increase in business inherently has had an attendant growth in "the number of foreign enterprises who have situated in each country." [2] With this increase in international business and trade comes cultural shifts and increased globalization and differences in managerial functions.

Mexico's trade with Asia is on the rise which is important to the country as it wants to reduce its overreliance on the U.S. market

According to the CIA, Mexico has become the US ' second-largest export market and third-largest source of imports. In 2014, two-way trade in goods and services exceeded $590 billion. (###) Mexico has free trade agreements with 46 countries, putting more than 90% of trade under free trade agreements. (###) In 2012, Mexico formally joined the Trans-Pacific Partnership negotiations and formed the Pacific Alliance with Peru, Colombia, and Chile. Mexico’s economy is made up from the agriculture industry and several other industries. The agricultural products are: corn, wheat, rice, beans, fruit, cotton, coffee, wood products, and soybeans and the industries services are: iron and steel, food and beverages, tobacco, chemicals, petroleum., textiles, mining, and tourism. (###) In Coastal cities like Cancun, tourism, is an essential part of local economy. A clear majority of Mexico’s population lives in poverty. According to Boundless, 44.2% of Mexico’s population lives below the poverty line as defined by the country’s National Council of Social Development Policy Evaluation. This part of the population has trouble meeting basic human needs such as stable shelter, food, and health care. According to Geo-Mexico, the same report found that almost 60% of Mexico’s population matched the criteria for “lower class”, while only 1.7% of the population could be best

Its inward Foreign Direct Financial investment amongst NAFTA nations for 2006 was $235.1 million, while the variety of jobs produced in the U.S. between 1993 and 2007 was 4.1. Its national employment level is 16.9 million. For the United States, its population, as of July 2007, is 301.6 million, with a GDP of $13,844 billion, and $870.2 billion in trade with NAFTA Partners. Since 2006, the United States attained over $165.1 billion in inward Foreign Direct Financial investment amongst NAFTA countries, while the number of tasks produced between 1993 and 2007 reached 25.8 million, and its nationwide level work was 140.0 million. For the 3rd member country, Mexico, its population in July 2007, was 105.2 million, and it reached a record GDP of $886 billion, while its trade with NAFTA partner reached $375.4 billion. In 2006, Mexico reached an inward Foreign Direct Investment of $129.1 billion among NAFTA nations, and the varieties of jobs developed in Mexico between 1993 and 2007 were 10.1 million, while its nationwide work level increased to a record 42.9 million

In manufacturing sector government promotes operations for labour intensive industries and exports for example tourism and in bound manufacturing units taking advantage of readily available low cost labour and vicinity to US market. Due to its population growth Mexico is the home for cheap and highly skilled young labour force. As per Huff Post Tech (P.1 “For a country that graduates more than 118,000 engineers each year and with more than 80 institutions specializing in engineering, entrepreneurship represents hope and the prospects of upward mobility for many

Mexico’s economy is mixed. The government, its agencies and government-owned or –controlled companies are anticipated to lessen their typically dominant position in the areas of public utilities, telecommunication, and petroleum. Private enterprise is the primary factor with regard to mining, manufacturing, entertainment, commerce, and the service industries. This also includes construction and tourism as well. Foreign investment is mostly found in the industries of mining, manufacturing, and the financial sectors.

An example of a regional area in Mexico where a number of multinational factories reside is Juarez as it is home to approximately 125 foreign-owned factories that employ 45,000 people3 Over the years, US companies along with Japanese and European companies have opened more than 1,500 assembly plants near the border4. (REFER TO APPENDIX 1.1;copy image form pp.313 A2) . The maquiladoras employ half a million Mexicans, paying them an average of $5 a day. This is comparable with the HOWEVER MUCH THEY GET PAID IN INDONESIA. The labor turnover rates are high, ranging from 180% per

Because of Mexico’s large manufacturing industry, the country produces and exports the same amount of goods as all other Latin American countries combined (Amadeo, 2017).

People are biggest asset for every organization and, therefore, to draw, motivate, and preserve the most skilled employees and assign them to jobs for which they are exceptionally well suited is a responsible job for human resource. Therefore, human resources management is done in all type of organizations. Profound management of people is equally indispensable in success of organizations as the sound management of production, finance, and other operations. The human resource management field postulates the infinite diversity of people and their dynamics (McKenzie & Traynor, 2002). To get into this career field, one must have the required education degree by completing many different courses, and have the experience along with skills and

According to the Center for Automotive Research, Michigan, automakers made an investment of around $24 billion in Mexico within the last six years. Although, the auto sector of Mexico is smaller than the United States, but it is increasing its production capacity at a faster pace.

That’s good news for New Mexico, and for all U.S. border states, because the rapid growth of Mexico’s maquilas, or assembly factories, is creating huge business opportunities up and down the 2,000-mile U.S.-Mexico border. And that, in turn, is creating new industrial hot spots in places such as southern New Mexico, where companies are flocking to set up new facilities to supply goods and services to the maquila industry. Other pressures include the strengthening of Chinese and some other Asian currencies against the U.S dollar, which makes exports from those countries more expensive, and the length of time it takes to transport goods from those places

Also they have become major import and exporters to various countries. Mexico has outdone some countries especially when it comes to the automotive industry (United 23). The automotive industry accounts for approximately 20.3% of their manufacturing (United 23). It also makes up about 3.6% of the national GDP in Mexico (United 23). Mexico has not only surpassed South Korea, but they have also passed Brazil, and they are now the sixth largest worldwide vehicle producer (United 23). This has taken them not only to the top for just rising economies, but now they are known worldwide for some of the best vehicles and automotive parts. Ten manufacturers are in Mexico currently, “including General Motors, Chrysler, Ford, Nissan, Fiat, Renault, Honda, Toyota, Volkswagen, and Mazda.” (United 23). They now have this expertise in exporting because they have improved access to international markets (“Why” 1). Not only that but, they have also gained more skilled laborers, and they now have competitive production costs (“Why” 1). Lastly, Mexico has also strengthened their democratic governance (“Why” 1). These have all played major factors in the success of Mexico, and that is what brought them to the top. Mexico’s economy has increased around 83% in overall income in the last couple years (“The” 1). Their main income comes from exports. The top five export destinations for Mexico are of course number one being the United States with 70% of exports, and number two being Canada with 5.4% (Simoes 1). Number three of five top exporting countries for Mexico is Spain with 2.1%, number four is China with 2%, and five of five is Colombia with 1.8%, so the researcher can see the United States is by far the largest exporting country for Mexico, but others play in (Simoes 1). Overall Mexico has grown over the past years and decades. They have not only become a large economic partner, meaning a trader or importer

This assignment is a portfolio, based on three current topics in Human Resource Management. The common theme of all the media articles I reviewed is the recognition of people as an asset by the organisations to achieve their strategic goals and objectives. It is observed that organisations are directing their efforts to recruit, retain and develop this asset.