QSO 321 5.3 Assignment Evaluating Potential Partnerships

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5-3Assignment: Evaluating Potential Partnerships Sarah Villanueva Southern New Hampshire University QSO-321 People Planet and Profit Professor Rinderknecht February 11, 2024

As a consultant who specializes in helping the U.S based businesses to expand into new international locations. I will be evaluating two countries Mexico and India to determine the most and least suitable locations to expand in for my new client. They are looking to outsource their company’s manufacturing of hard drives and computer memory. The company is focused on quality, sustainability, and equality. Sustainability Measures and Environmental Regulation Mexico implemented strict environmental regulations and policies to promote sustainability. In 1988, The General Law on Ecological Balance and Environmental Protection was established. The LGEEPA addresses a range of environmental matters which includes water, air, and ground pollution (Mexican environmental laws, regulations, and history). In addition, there are other important regulations for manufacturers to know which includes: National Waters Law, Law of Sustainable Forest Development, Federal Law for the Prevention and Control of Environmental Pollution (Baldwin, 2023). These law resembles the U.S statues such as the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act. India’s main environmental regulations includes Environmental Protection Act 1986, Water (Prevention and Control of Pollution) Act 1974, and Air (Prevention and Control of Pollution) Act 1981 (Enhesa, 2023). Cost and Workforce Mexico manufacturing workforce is well-educated. The cost of labor is $5.30 per hour for a 48-hour work week. The types of manufacturing industries are aerospace, automotive, auto parts, electronics, medical devices, furniture, metal mechanical, and plastic injection molding. “Mexico has over 730 plants manufacturing audio and video, telecommunication, computer

equipment, and related parts” (Mexico Electronics Manufacturing Industry, 2023). Mexico is the third- largest exporter of computers. In India, the labor costs will vary by region. In tier two and three cities are really lower than in tier one due to the cost of living. The types of manufacturing industries in India are textiles, leather, and electronics. “In 2022, the value of computer hardware production in India was around 298 Indian rupees” (Sun, 2023). Government Regulation Mexico is part of The North American Free Trade Agreement. This eliminates tariffs between U.S and Mexico. The Mexican government IMMEX (Maquiladora, and Export Services Industry) put into place laws and regulations for manufacturing companies. Depending on the manufacturing business there are certain certifications that businesses have. The three certifications’ categories are A, AA, and AAA, each of the categories has various levels of regulations (Richford, 2023). In India, the “Trade Unions Act deals with the registration, rights, liabilities, and responsibilities of trade unions” (Amritt, 2022). Manufacturing industries will need to resister for the Goods and Services Tax (GST) which is a broad indirect tax replaced several other indirect taxes in India. Intellectual Property In Mexico, the Industrial Property Law and the Federal Copyright Law cover the intellectual property rights. The intellectual protection is spread by a number of agencies under the Mexican legislation. The Paris Convention, The Patent Cooperation Treaty, The Hague Agreement, and The Madrid Protocol are the treaties that strengthen IPR. India is one of the most challenging major economies with respect to the protection and enforcement of intellectual property. This country has not taken steps for any intellectual property issues. In the

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manufacturing industry businesses are required to abide by the provisions of intellectual property regulations such as the patents act, trademarks act, and copyright act. Reputation “About one-third of electronics manufacturing in Mexico includes the Information Technology industry” (Richford, 2021). Factories make products that include computers, memory chips, network switches, and routers (Richford, 2021). About 30 percent of electronics Mexico produces are consumer electronics. They have grown to be the sixth largest technology producer in the world and the third-largest producer of computers and host at least a dozen foreign and domestic computer manufactures (Richard, 2021). On the other hand, India electronics manufacturing services are growing but not until the next decade. The India consumer electronics market about USD 73.73 billion in 2022. Recommendation I would recommend for my client to expand in Mexico this is the most suitable location for outsourcing the manufacturing of hard drives and computer memory. Mexico is a rapid growth of electronic manufacturing. My client will benefit because of the lower labor cost and skilled workforce. India might be good to expand in the future but not right now. .

Resource: Advantages of manufacturing in Mexico for global companies: Exploring the benefits . Co. (n.d.). https://www.co-production.net/manufacturing-in-mexico.html#:~:text=Why%20Are %20Global%20Companies%20Manufacturing,mechanical%2C%20and%20plastic %20injection%20molding . Baldwin, D. (2023, May 17). Mexican environmental laws manufacturers should know . TACNA. https://tacna.net/mexican-environmental-laws-manufacturers-should-know/ #:~:text=Hazardous%20Waste%20Management%3A%20Manufacturers%20in,regulate %20air%20and%20water%20quality . Business laws in India: India business regulations . Amritt, Inc. (2022, October 25). https://amritt.com/services/india-business-consulting/business-laws-regulations-in-india/ Enhesa. (2023, May 18). New Environmental Laws in India: The next chapter of change . https://www.enhesa.com/resources/article/new-environmental-laws-in-india-the-next- chapter-of-change/#:~:text=The%20main%20environmental%20laws%20in,Control%20of %20Pollution)%20Act%201981 India - protecting intellectual property India - IPR . India - Protecting Intellectual Property | Privacy Shield. (n.d.). https://www.privacyshield.gov/ps/article?id=India-Protecting- Intellectual-Property

Manufacturing laws and their challenges . Legal Service India - Law, Lawyers and Legal Resources. (n.d.). https://legalserviceindia.com/legal/article-12986-manufacturing-laws- and-their-challenges.html Mexico Electronics Manufacturing Industry . IVEMSA. (2023, March 15). https://www.ivemsa.com/industries/electronics-manufacturing-in-mexico/#:~:text=Mexico %20has%20over%20730%20plants,of%20electronics%20in%20the%20world . Mexican environmental laws, regulations, and history . News & Insights for Manufacturing in Mexico. (n.d.). https://insights.tetakawi.com/mexican-environmental-laws-unenforced- turmoil-or-evolving-success Richford, M. (2021, November 22). Why Mexico’s electronics manufacturing is growing: Naps . NAPS Inc. https://napsintl.com/mexico-manufacturing-news/mexicos-booming- electronics-manufacturing-industry/ Richford, M. (2023, August 17). Manufacturing compliance regulations in Mexico . NAPS Inc. https://napsintl.com/mexico-manufacturing-news/manufacturing-compliance-regulations- in-mexico/ Sun, S. (2023, April 28). India: Computer Hardware Production Value 2022 . Statista. https://www.statista.com/statistics/637012/computer-hardware-production-value-india/

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#:~:text=In%20fiscal%20year%202022%2C%20the,around%20298%20billion%20Indian %20rupees . What you need to know about manufacturing in India . Sourcify. (n.d.). https://www.sourcify.com/what-you-need-to-know-about-manufacturing-in-india/ #:~:text=The%20Indian%20textile%20industry%20is,fabrics%2C%20wool%2C%20and %20silk .

QSO 321 5.3 Assignment Evaluating Potential Partnerships

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