mexico case study

Project Description:

paraphrase and please no plagiarism

in the international spotlight: mexico

questions & suggested answers

1. why would multinationals be interested in setting up operations in mexico? give two reasons.

answer: one reason why mexico is of interest to multinationals is that the work force is quite productive and turns out high quality goods. this is particularly evident from the information in the case related to ford's hermisillo plant. a second reason is that the mexican economy is growing and this means a local market for goods and services. so by setting up operations in mexico, multinationals can tap this market.

2. would culture be a major stumbling block for american firms doing business in mexico? for european firms? for japanese firms? explain your answer.

answer: culture is always a major problem for those not aware or sensitive to differences. since u.s. firms are closer to mexico and have more experience there, they would undoubtedly have fewer problems than the europeans and especially the japanese.

one barrier discussed previously is the concept of time. because mexicans have a different concept of time than u.s. managers, this could be a major stumbling block if it is not understood.

3. why might mncs be interested in studying the organizational culture in mexican firms before deciding whether or not to locate there? explain your logic.

answer: one reason why mncs would be interested in studying the organizational culture of mexican firms is because of the differences in organizational culture. while the national cultural differences would help identify general differences between the multinational and the local personnel, the organizational culture differences would help explain the way things are done within the firm. mncs could learn a great deal by finding out how mexican employees are accustomed to doing things, rather than simply trying to transplant their operating philosophy and style on the local employees. the next chapter looks at managing organizational cultures and diversity in depth.
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