Regional Economic Integration and Internationalization
Labor standards play an important role in business decisions for most industries. The level of unionization of a country, as well as the minimum wage and other labor-related regulations, can pose a challenge for any company considering operations in a specific country and/or region of the globe. Another key component in companies deciding to which country operations should be extended is the degree of regional economic integration. Agreements such as NAFTA (North American Free Trade Area), Central America Free Trade Agreement (CAFTA), and MERCOSUR (Southern Common Market) exempt some products that circulate among member countries from tariffs. This creates a competitive advantage for companies that have operations in one of those countries and want to export to the other members.
Directions
Using University online library resources and the Internet, research such trade agreements and select at least three (3) peer-reviewed, academic resources (beyond the assigned readings) for use in this assignment.
Complete the following in a report:
- Identify two international manufacturing companies that have recently started operations in two different countries and are facing challenges in adapting to new laws and accepted practices. Be sure to select a company that is setting up operations in a country that has workforce, trading, and tariff and non-tariff barriers. In addition, select a company that is setting up operations in a country with regional economic agreements and integration that are likely to facilitate smooth operations.
- Analyze the decisions they have made regarding labor standards, laws, and regional economic agreements.
- Evaluate the challenges each organization faced after having entered those new markets, and how existing competitive advantages helped them overcome those challenges.
Your report should be written in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, punctuation, and APA format.
Write a 4-pages report in Word format using the APA Paper Guid
