Case Study_ The Wall Street Journal Case in the News.docx

Is business and as an owner of a company the cost of

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is business and as an owner of a company the cost of labor, operation, and real estate is as important to reduce cost. In order, to make as much profit as possible. Explain the reasons behind Audi’s decision to build its Q5 SUV in Mexico rather than in the United States? The reasons behind Audi’s decision to build its Q5 SUV in Mexico rather than in the United States was because of low wages and Mexico’s free-trade agreements. Audi figured out it would save a total of 50% on labor cost in the plant in Mexico. In addition, there will be a saving in parts in Mexico when compared to the numbers of the Tennesse plant (Jones, 2016). The free- trade agreement provides exporters a duty-free access to markets in the world. Mexico has 10 free-trade arrangements along with 45 countries. Therefore, it provides business with an easier way to export their products to other consumers (Jones, 2016). Describe how Audi’s strategy to train supervisory staff from the Mexican plant in Germany will have a positive impact on the operations at the new facility? Audi’s strategy to train supervisory staff from the Mexico plant in Germany will have a positive
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Why Auto Makers Are Building New Factories in Mexico 4 impact on the operations at the new facility. By having a positive impact on the operations of the new facility. Mainly because it will provide the staff with knowledge and training on how Audi systems work. As well as, for the staff to learn and experience what is the companies goals,
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