QSO 321- 5-3 Evaluating Potential Partnerships

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1 Evaluating Potential Partnerships Harriet Creyer 5-3 Assignment: Evaluating Potential Partnerships Southern New Hampshire University QSO-321- People, Planet and Profit
2 Evaluating Potential Partnerships Evaluating Potential Partnerships The two countries that I have chosen to evaluate are Mexico and Thailand. Sustainability Measures and Environmental Regulation : Mexico: The environmental regulations for Mexico were “enacted in 1988 with the General Law on Ecological Equilibrium and Environmental Protection (LGEEPA)…. with those manufacturers who violate these rules could then be found in breach of permit and then fined for damages. (Richford, Mexico Environmental Regulations 2020). According to the Environmental Performance Index (EPI) their overall rank is 51st (EPI, n.d) and with a global sustainability ranking of 49 th (Earth.org, 2021) Thailand: There are currently “ there are no mandatory carbon targets, actions, or schemes imposed as of yet. All undertakings are on a voluntary basis.”.   “According to the Environmental Performance Index (EPI) their overall rank is 108th (EPI, n.d) and with a global sustainability ranking of 154 th (Earth.org, 2021) Cost and Workforce : Mexico: Mexico has a large and growing workforce of skilled and unskilled workers available for manufacturing computer components. The cost of labor is relatively low, making it a cost-effective option for U.S.-based companies. “Skilled workers are typically paid 20%-30% more than unskilled.” ( Labor in Mexico 2022).
3 Evaluating Potential Partnerships Thailand: Thailand has a large and growing workforce of skilled and unskilled workers available for manufacturing computer components. The cost of labor is relatively low, making it a cost-effective option for U.S.-based companies. “ Labor force comprises people ages 15 and older who supply labor for the production of goods and services during a specified period.” ( Thailand: Environmental sustainability - a new demand in today's Business World ) Government Regulation : Mexico: Mexico has a relatively open investment environment and is open to foreign investment, but there are restrictions on certain activities and certain sectors, such as energy and telecommunications. Mexico also has a number of laws and regulations related to taxation, labor, and environmental protection that can be complex and challenging for foreign companies. Thailand: Thailand has a relatively open investment environment and is open to foreign investment and does not restrict the repatriation of profits. Thailand has a number of laws and regulations related to taxation, labor, and environmental protection that can be complex and challenging for foreign companies. (Thailand, n.d) Intellectual Property : Mexico: Mexico has laws in place to protect intellectual property, such as copyrights and patents, but there is still a risk of intellectual property being stolen or misused if a manufacturing facility is established in the country.
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4 Evaluating Potential Partnerships Thailand: Thailand also has laws in place to protect intellectual property, such as copyrights and patents, but there is still a risk of intellectual property being stolen or misused if a manufacturing facility is established in the country. Reputation:  Mexico: In Mexico companies can face reputational risks due to the country's high levels of crime and violence, as well as the risk of a negative public perception of outsourcing manufacturing to the country. Thailand: In Thailand, a companies can face reputational risks due to the country's poor labor rights standards and the risk of a negative public perception of outsourcing manufacturing to the country. Recommendations : Based on the evaluations of the key attributes and requirements, the most suitable location for the client's new manufacturing facility would be Mexico. Mexico offers a large and growing workforce of skilled and unskilled workers, a relatively open investment environment, and a number of laws and regulations related to taxation, labor, and environmental protection. The least suitable location for the client's new manufacturing facility would be Thailand due to its poor labor rights standards and risk of intellectual property theft.  
5 Evaluating Potential Partnerships Overall, Mexico is the more suitable location for the client's new manufacturing facility due to its cost-effective labor, open investment environment, and well-regulated laws and regulations.
6 Evaluating Potential Partnerships References Environmental performance index . EPI. (n.d.). Retrieved February 2, 2023, from https://epi.yale.edu/epi-results/2022/component/epi Labor in Mexico . NAPS. (2022, November 2). Retrieved February 2, 2023, from https://napsintl.com/manufacturing-in-mexico/labor-in- mexico/ Mexico . Earth.Org. (2021, November 23). Retrieved February 2, 2023, from https://earth.org/country/mexico/ Mexico indicators. (n.d.). Retrieved February 2, 2023, from https://tradingeconomics.com/mexico/indicators Richford, M. (2020, August 19). Mexico Environmental Regulations . NAPS. Retrieved February 2, 2023, from https://napsintl.com/mexico- manufacturing-news/mexico-environmental-regulations/ Thailand environmental policies and vulnerabilities . Earth.Org. (2021, November 23). Retrieved February 2, 2023, from https://earth.org/country/thailand/ Thailand: Environmental sustainability - a new demand in today's Business World . Thailand: Environmental Sustainability - A new demand in today's - Baker McKenzie InsightPlus. (n.d.). Retrieved February 2, 2023,
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7 Evaluating Potential Partnerships from https://insightplus.bakermckenzie.com/bm/environment- climate-change_1/thailand-environmental-sustainability-a-new- demand-in-todays-business-world Thailand - labor force, TOTAL2023 data 2024 forecast 1990-2021 historical . Thailand - Labor Force, Total - 2023 Data 2024 Forecast 1990-2021 Historical. (n.d.). Retrieved February 2, 2023, from https://tradingeconomics.com/thailand/labor-force-total-wb- data.html