Drotos Electronics Expansion Proposal

Samantha Craig

Soc/337

1/10/2016

Introduction

One of the largest companies in the United States and Germany is Drotos Electronics. At this time there are currently plans on the table to expand the manufacturing abilities to Mexico. However, there has been concerns brought up that need to be addressed if this change should happen. These issues mainly are based off of the worry that should the business expand would it to increase the drug cartels in that area. It also was brought to our attention that there is split mind on the promotion of jobs on lower pay and if they create poor working conditions. Lastly would expanding cause environmental and political concerns to wrap around the companies name. The research that will be provided in this document will address all of these issues and concerns as well as explore how they might affect the expansion proposal.

Proposed Issues

There are many issues that have been brought to the attention of the company expanding to Mexico. The biggest concern is the drug cartel and the drug trafficking and violence that seems to follow them. A questions that comes to mind is would this increase their power? It has been noted that the rise in homicides have started to increase significantly. According to (Business insider, 2016) "The total number of homicides in the first half of this year — 10,301, or about 57 a day — is about 15% more than the 8,979 in the same period in 2015, though it is fewer homicides than in the first halves of 2011 and 2012, when the drug war's violence was considered to be at its peak." This is because all of the smaller gangs that belong to the different cartels are starting to fight back and build rank once again. If we were to open up down there it could be a fifty/ fifty chance that it could increase their power. I say this because they could find a way to corrupt someone that works there to work as a trafficker. However there is the chance that providing jobs that pay well could decrease the man power that works for the gangs because it keeps them out of trouble and debt and it is well worth the risk.

The second question that brings up a rise in concern is would expanding impact the environment, the immigration and labor acts as well as the North American Free Trade Act. Naturally with opening any company with an expansion there is to be an environmental impact document submitted. This is place to make sure that anything that can be seen as toxic waste is gotten ride of in a safe way to protect the environment. Second is the ownership of equity this is where the North American Free Trade Act takes place "most economic activities in Mexico, whether in manufacturing or services, are open to 100 percent participation by U.S. and Canadian investors." (Mexconnect, 2016) The thing is sense we will need to train and hire those who are local to Mexico in the region we expand to we need to file for work visas for those who will go. We need to make sure that these are filed at least two months in advance because it can take anywhere from twenty to forty days to get approved. The labor contract must also be filed this is to notify that those who will be seeking employment will make so many hours and how much. (Mexicolaw, 2016) explains that "For every 6 days of work (Monday through Saturday), employees are entitled to one day of rest with full pay. Therefore, when hiring in Mexico please keep in mind that you are hiring per week and not per day, when deciding on the salary." This also includes that those who are hired can work a full 48 hours before they are considered working overtime.

Globalization

There are many different outlooks on whether globalization is hurting or helping the region, and what the cause and effects of globalization. "The development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets." (Merriam-Webster, 2016) In the states of Mexico that have a higher exposer to globalization they attract foreign investments and growth in international markets as well as industries. Those who have very little exposure are forced to work more to bring home enough supplement. Many say "that it raises wages and standards of living, and supports economic growth. Those against say that globalization undercuts traditional labor and lifestyles while increasing wealth inequality." (Henrichs, 2013) The Northern part of Mexico is the region has seen the benefits of higher incomes and labor earnings. The problem is that the southern part even though economically they haven't changed they are still affected by the laws that are in place for trades. In fact their labor earnings are ten percent lower compared to the Northern section.

Conclusion

In conclusion, there are many different issues that can arise when it comes should Drotos Electronics expand to Mexico. There are plenty of what ifs and many are around globalization and how will moving there affect the economy and its people. While there are concerns such as the drug cartel and their power it is something that can be controlled sense the company is originally in America. If we present the proposal that has labor wages, hours and expectations as well as the environmentally impact contract the company should grow. If we place it in the middle of the northern and southern areas of Mexico we can actually produce a better outcome for those who are suffering from globalization by reaching out to that region in particular.

References

Henrichs, K. (2013, April). Globalization in Mexico. Borgen Magazine, (), . Retrieved from

Meade, T. A. (2010). A history of modern Latin America: 1800 to the present. New York, NY: Wiley Blackwell.