International Manag Ment

4120 Words Nov 30th, 2012 17 Pages
1. Assume that you are executive of a large U.S. multinational cooperation planning to open a new manufacturing plants in China and India to save on labor cost. What factors should you consider when making your decision? Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal?

As an executive of a large U.S. multinational corporation planning to open a new manufacturing plants in China and India to save on labor cost. There are a few factors that must consider when making the decision. The factors are including the environment business of the both country. First factor that must be consider is regulations and laws of the country. It is a very
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The third factors that the producer must consider to come in the foreign country is the technological of the country. The producer must use the suitable technological for the country. It is because if the producer use the low technical from the country , the country will decrease their believable to the producer because they look their technological is more better. But , if the technological that producer use is very high the country also don’t know the technology and they also cannot be acceptable. Besides that, the technological that the producer use must have been easy to the labor of the country to manage. If the labor don’t know how to manage it, the process of production may take along time. That means, it will increases the cost of labor. So it will failed the goal of the company to save the labor costs. Next factors that the producer must be consider is ethics of the country. As we knows every country must have their own code of ethics. Not only country but every company also have their own code of ethic. Code of ethics is a set of rules that can and cannot be do at the some place. So the producer must knows the thing that can and cannot be do at the country that they come to make a business. It is because to prevent against the ethics of the country. “Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal?” outsourcing of production facilities and