The Impact of NAFTA Background: As NAFTA has eased regulations and lowered trade

Question

The Impact of NAFTA

Background: As NAFTA has eased regulations and lowered trade barriers, unskilled production work has flowed into Mexico, decimating the power of many unions in the U.S. More recently, semi-skilled jobs, and even some highly skilled jobs, have moved to Mexico as well. This exercise is designed to dramatize the impact of these trends.
Exercise: We will look at the following scenario from three different perspectives:

1. CEO,
2. Union Negotiator,
3. Plant Manager,

Scenario: Patriot Laboratories is a medium-sized electronics company based in Los Angeles. It designs and produces a small range of parts that are ultimately used in military hardware. Its products are all manufactured on-site, by a semi-skilled workforce of mostly Asian immigrants. Given recent gains in the quality of Mexican manufacturing, the Plant Manager believes that they could now move production to Ciudad Juarez, Mexico (directly south of El Paso), with minimal risk of quality glitches. The average wage in the U.S. Patriot Laboratories factory is $15 per hour, versus $6 per hour for comparable workers in Ciudad Juarez.

The CEO has called a meeting to hear input from the Union Negotiator and Plant Manager. Please provide reasons and input.

What should the CEO do?
1. Students born in Jan, Feb, Mar, Apr, May, or June must Argue/Present reasons for the Union Negotiator.
2. Students born in Jul, Sep, Oct, Nov, or Dec must Argue/Present reasons for the Plant Manager.
3. Students born in Aug will be the CEO(s) and will chime in with a decision and provide explanation of the decision.

Explanation / Answer

Scenario:

As I born in February I would Argue/Present reasons for the Union Negotiator.

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