US Automobile Manufacturing Term Paper

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globalization and a global economy, accompanied by a certain commercial liberalization, allows for something which influences not only the automobile industry, but most industries as well: outsourcing. The example presented in the case study was quite eloquent: in Canada, workers in the automobile industry are more efficient for a lower salary. The example is remarkable, because it refers to another industrialist, strong economy and not to a third world economy. So, as a first pointer for management practices, we need to refer to the outsourcing solution as one of the best ways to decrease overall costs and, possibly, to realize scale economies.

On the other hand, globalization brings about a concerning issue in terms of human resource: cultural differences. The decision to move production to a facility in Canada is less problematic: Canada has similar behaviors and cultural traditions, while English is widely spoken throughout the country.

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What happens, if, for example, costs are reduced to up to 50% if the production is moved to South America? Here, we have a different managerial culture, different approaches to the concept of work, a different language etc. In the end, in terms of human resources, adjusting and managing the human resource here implies costs that need to be accounted for.

A second thing we need to consider, following the case study as well, is the fact that the baby boomers generation is aging, which means that the characteristics of that respective entire generation are now changing, adapting to the newcomers and, in this sense, are also changing the general aptitudes….....

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