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Example research essay topic: Microchip Identification Company In Mexico - 783 words

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Microchip identification Company in Mexico First of all one needs to understand that Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector, which makes this country a wonderful place for the location of our Microchip Identification company. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity, natural gas distribution, and airports (Reed, 19). Income distribution remains highly unequal, which would allow Microchip Identification company to hire competent Mexican workers at very modest prices. Also one should not forget that trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Following 6. 9 % growth in 2000, real GDP fell 0. 3 % in 2001, recovering to only a plus 1 % in 2002, with the US slowdown the principal cause (Heusinkveld, 89).

Thus, one can make an sound assessment that the close proximity of the USA to Mexico makes Mexico a country, whose economy is highly correlated with the US economic cycles, meaning that one should not expect Mexico to face severe problems related to its economy, and society, in times of US economic growth. In other words, Microchip Identification company would not face any problems in Mexico, hiring people, operating the company and conducting R&D activities, when the growing US economy would need our services / goods . The economic correlation will allow our company to smoothly function in Mexico. At the same time I would like to note that Mexico implemented free trade agreements with Guatemala, Honduras, El Salvador, and the European Free Trade Area in 2001, putting more than 90 % of trade under free trade agreements.

Foreign direct investment reached $ 25 billion in 2001, of which $ 12. 5 billion came from the purchase of Mexico's second-largest bank, Banamex, by Citigroup (Gallant, 30). From this information we can make a conclusion that the Mexican economy is highly export oriented and the presence of US banks and other business institutions in the region, would make the work of Microchip Identification company transparent, efficient and profitable. Information technology (IT) in Mexico if compared to the USA is inadequately developed, yet the Mexican government and businesses do the best they can to adopt the US information technological standards and facilities to make Mexico a country with a well-developed information infrastructure that would allow Mexico to work well in the export oriented businesses. On a more practical matter, I should note, Mexico, does have sophisticated computers, business software, cellular phones, PDAs, and Internet, yet one should not forget that much of it is imported from either the USA or Asia. Thus, in order to minimize extra costs and remove oneself of extra hassle, Microchip Identification company is encouraged to bring into Mexico all (or most) of the information technology it plans to use in it business operations. IT technology can be bought in Mexico, yet at prices higher than in the USA, thus making the company incur unnecessary expenditures.

Research and development (R&D) facilities are also present yet inadequately developed in Mexico. Mexico provides extremely useful, cheap, and productive workforce that can be engaged in menial labor, yet still fails to provide competent employees for knowledge-intensive industries in which Microchip Identification company would operate. One should not forget that these few competent and outstanding Mexican specialists strive to find employment abroad (US and Canada) at high salaries and mostly neglect the opportunities available to them at home (at domestic, or slightly-above-domestic salaries). Thus, Microchip Identification company is advised to bring in key vital R&D specialists from the USA, while expecting to easily hire the assisting staff in Mexico.

Cultural awareness is no longer an issue in Mexico. Mexicans drink Coke, learn English, wear Nike shoes, and like driving. A large number of Mexican students study in the USA and a great number of Americans spend their spring break in Cancun. The USA had a great influence on the Mexican economy, politics and society, and, as a result of that virtually removed cultural barriers between the two countries (Gallant, 34).

Yes, they are Mexicanos for us, and we are gringos for them, yet there no longer exists hostility in these terms and most of the US companies operating in Mexico do not face any cultural difficulties. Microchip Identification company should not expect to have these difficulties either. Bibliography: Heusinkveld, Paula, Inside Mexico: Living, Traveling, and Doing Business in a Changing Society, NY Random House, 2002. Gallant, Robert, Avoiding the Pitfalls of Operating a Business in Mexico: An Introduction to Doing Business in Mexico, Prentice Hall, 2003.

Reed, Glenn, How to Do Business in Mexico: Your Essential and Up-to-Date Guide for Success, Penguin books, 2000.


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