|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
Martin Stewart
March 14, 2001
International Business
Martin’s Textiles Case Paper
What are the Economic and Social costs and benefits to Martin’s Textiles of shifting Production to Mexico and are the Economic and social costs and benefits independent of each other?
A move towards a more regional economic integration provides many benefits to the customers and with the case of the Martin’s Textiles industry, it is quite clear that his customers would have economic benefits like huge savings after buying the clothing and just because the customers save, it doesn’t mean that their savings will go to waste because they will, in turn, spend on other items that will naturally stimulate growth in other industries in America. ... Another economic gain that resulted from Martin’s Textiles, shifting production to Mexico is that the company’s employees who were stationed in New York were now forced to specialize in other areas of production of goods and services that they can produce more efficiently because America is very efficient in producing aircrafts and microprocessor chips for computers and so on. ... A drawback or cost of cases such as the Martins Textile case is that America and Mexico have very dissimilar economies and that could cause some potential problems because these differences complicate macroeconomic policy and if there are minimal to no trade barriers and if Mexico becomes too dependant on the American economy then they might act very poorly to economic shocks when they occur.
Approximate Word count = 993
Approximate Pages = 4
(250 words per page double spaced)
|
|
|
|
|
|