After reading through the scenario of Acme Corporation, it seems that the company is faced with the decision whether to expand their business and open a plant in El Paso, Texas or across the U.S. - Mexico border in Juarez, Mexico.  Let's go for the less obvious approach and take a look at the pro's and con's of opening a plant in Juarez, Mexico:

Pro's in Juarez, Mexico:

• Cheaper labor costs. According to the article, Acme could expect to pay its least skilled workers less than $1.50 per hour in wages and benefits.
• Cost of goods 'exported' to Mexico would be a lot less since there would be a production plant local.
• Expanding business outside of the U.S. could potentially increase growth of the company. 

Con's in Juarez, Mexico:

• Unfamiliar with Federal Regulations in Mexico. 
• Operating in a dangerous city, which could pose potential threats to the company. 
• Unfamiliar with taxes in Mexico. 

Additionally, there are a multitude of things to consider when deciding whether to expand your business globally, such as:

• Affordability
• Geographical distance
• Brand recognition
• Market landscape
• Ease of registering a business
• Employment and tax regulations
• Economic and political considerations
• Cultural Understanding
• Access to skilled talent
• Fulfillment
• Marketing techniques
• Packaging 
• Quality assurance

Personally, I think expanding Acme outside of the U.S. could be a smart move for the business and potentially increase revenue for the company. Acme has seen its sales to Mexico increase dramatically, so operating a plant there could save the company money in production and exports, while also increasing potential business. 

Do you think opening a plant in Juarez, Mexico would be worth the risk in order to potentially increase business for the company? Why or why not?

Answer rating: 100% (QA)

Opening a plant in Juarez Mexico presents both opportunities and challenges for Acme Corporation Lets evaluate the potential worth of the risk Pros 1 ... View the full answer