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Immigration satisfying the standards of a particular

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ImmigrationSatisfying the standards of a particular country is no guarantee that a foreigner can then work there. In addition,governmental regulations often require an organization—domestic or foreign—to search extensively forqualified personnel locally before it can even apply for work permits for personnel it would like to bring in fromabroad.Concept CheckIn discussing “Factor Mobility” inChapter6(pages174175), we explain the increasing reliance onpeople as an internationally mobile production factor and that countries hand out immigration papers onlysparingly.How Companies Deal WithGovernmental Trade InfluencesWhen companies are threatened by import competition, they have several options, four of which stand out:1.Move operations to another country.2.Concentrate on market niches that attract less international competition.3.Adopt internal innovations, such as greater efficiency or superior products.4.Try to get governmental protection.When facing import competition, companies canmove abroad or find foreign supplies,seek other market niches,make domestic output competitive,try to get protection.
26Each option entails costs and risks; therefore, different companies make different choices. For example, competition fromJapanese imports spurred the U.S. automobile industry to move some production abroad (such as subcontracting withforeign suppliers for parts), develop niche markets through the sale of minivan and sport utility vehicles (SUVs) that initiallyhad less international competition, and adopt innovations such as lean production techniques to improve efficiency andproduct quality. They also successfully sought VERs from Japan, and General Motors and Chrysler eventually receivedsubstantial government funding to survive.Tactics for Dealing with Import CompetitionGranted, these methods are not realistic for every industry or company. Companies may lack the resources toshift their own production or find suppliers abroad. They may not be able to identify more innovative orprofitable product niches. Even if they do, foreign competitors may quickly emulate them. In such situations,companies often ask their governments to restrict imports or open export markets.Convincing Decision-MakersGovernments cannot try to help every company that faces tough international competition. Likewise, helpingone industry may hurt another. Thus, as a manager, you may propose or oppose a particular protectionistmeasure. Inevitably, the burden falls on you and your company to convince officials that your situation warrantsparticular policies. You must identify the key decision-makers and convince them by using the economic andnoneconomic arguments presented in this chapter. You must also put forward the types of restrictivemechanisms most likely to help your situation and convey to public officials that voters and stakeholderssupport your position.

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