Problems of moving the company to mexico red tape the

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Problems of moving the company to Mexico Red Tape The expenses of moving this car plant from USA to Mexico is great and tedious too. Moreover, the laws and regulation in Mexico, though not very much, do differ with those in USA, and hence dealing with them is another big problem to deal with once the transfer made. The stakeholders and the car plant must adhere to business laws in Mexico. Since the business laws, in addition to, the tax laws and rates will change as the business moves to Mexico, the
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plant will be forced to hire attorney for guidance and advice in the host country. This sometimes can be a very expensive undertaking. Labor movement problems If the plant moves from the USA to Mexico, there will be some employee mobility issues, as they will require documents such as visas to stay reside and work in the new country. This involved long and tedious paperwork, in addition to, large monetary expenses. The visas of stakeholders and for the plant must be approved, for the businesses to support or sponsor the employees’ visas to Mexico. The other side of labor management in the new country is hiring the local people. However, this is also another problem, as these local employees have no skills and experience in the new business and hence this will make the plant take too long to build its foundation in Mexico, in addition to incurring initial losses (Deresky, 2011). Cultural barriers Social variations can create a range of troubles with the USA plant, from worker actions and perform morals to language limitations to ideal planning. For example, People in America are interested in punctuality and reliability, and putting in a "full" week, which is deemed by American requirements forty hours or more. People in America take an hour lunchtime, and are required to work eight-hour day. Yet if a USA plant is moved to Mexico, there will absolutely be cultural variations that influence the work at the plant (Deresky, 2011). In Mexico, one may find out that on-the-dot punctuality is not a big deal, and neither is tight bond to working time and work place. It is acceptable in these places to spend some time working over tasks with patience,
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and taking a relaxed lunchtime break that may be more than an hour. Without intensive cultural study, misinterpretation, and interruption could happen. Marketing Strategies A marketing strategy that has proved to work for the car plant in the USA may not necessarily work in Mexico. Marketing strategies must be designed in a way that they cater for a new perspective. These strategies are promotional means, which include advertisements. Research is also very essential to expose consumer behavior outline and cultural variations, which will affect the car plant brand because of different perceptions in these two countries.
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