Best Location For Outsourcing A Company

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Best Location for Outsourcing a Company
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Best Location for Outsourcing a Company
Introduction
In my role as a consultant facilitating the expansion of U.S.-based firms into foreign
markets, there are various strategies that I should adopt. In this task, the primary responsibility is
to develop a strategic decision-making process that helps identify the optimal place for
outsourcing the manufacturing of hard drives and computer memory for my client's company.
The best decision would be realized after conducting a comparative analysis of two nations,
namely India and Mexico. India is the better choice for the client's new manufacturing site after
examining sustainability policies, environmental laws, labor costs and availability, government
rules, protections for intellectual property, and reputation.
Based on research, India and Mexico have taken measures to mitigate the impact that
their countries have on the environment. The client's goal of retaining quality and sustainability
at their new manufacturing locations may be well served by the fact that India has implemented
efforts such as the National Action Plan on Climate Change, which is an example of one of these
projects. In contrast, Mexico has implemented the National Climate Change Strategy (IEA,
2022), with two primary goals: (1) lowering its emissions of greenhouse gases and (2) better
adapting to its rapidly changing environment.
These two countries possess huge populations of highly educated workers who possess
the set of skills necessary to manufacture computer components at lower costs than other
countries. In addition, the cost of labor in both nations is significantly lower than that in the
United States, which may be of financial benefit to the customer. Many corporations have found
success in outsourcing their manufacturing processes to India due to the high level of talent
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found in the country's labor force (Khurana, 2020). Also, many corporations choose Mexico as
their location for production because of the country's relatively inexpensive labor costs.
Concerning government legislation, India and Mexico exhibit a receptive stance towards
foreign investment, offering various incentives to entice foreign enterprises seeking to establish
manufacturing operations within their respective territories. India offers several tax benefits,
including the establishment of Special Economic Zones, while Mexico provides incentives
through programs such as the Maquiladora program. Furthermore, it is worth noting that both
nations have implemented regulatory frameworks aimed at safeguarding the welfare of workers
and the environment. These regulations serve to support the client's dedication to upholding
standards of excellence, sustainability, and equality (Juarez, 2019). In addition, India and Mexico
have implemented legal frameworks to safeguard intellectual property rights. In the Indian legal
framework, the Patents Act of 1970 and the Trademarks Act of 1999 have been established as
legislative measures aimed at safeguarding intellectual property rights. In addition to its legal
framework for intellectual property protection, Mexico has implemented the Industrial Property
Law, which serves to safeguard patents, trademarks, and copyrights (Kumar, 2019). While there
exists a certain degree of vulnerability to intellectual property theft, it is evident that the legal
frameworks in both nations demonstrate adequacy in safeguarding the client's property rights.
Today, India and Mexico are recognized as having a strong presence in the global
manufacturing industry. The manufacturing operations of a great number of corporations have
been successfully offshored to India, and Mexico is well-known for its inexpensive labor force as
well as its incentives for international investment. In addition, there are regulations in existence
in both nations to protect the rights of employees as well as the environment (Juarez, 2019). This
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legislation could be of assistance to the client in maintaining their dedication to quality, equality,
and sustainability.
Based on recent reviews, it is evident that Mexico is the least qualified place for the
company's new manufacturing plant, while India is the most appropriate for essential
characteristics and needs. India offers various benefits for foreign businesses, including a
competent workforce and cheaper labor costs, with rules to safeguard workers and the
environment, as well as laws to protect the client's intellectual property (Reputation, 2019). In
addition, Mexico offers various benefits for international investment, including cheaper labor
costs and regulations protecting intellectual property. Mexico does not have the same labor and
environmental protections as India, which could affect the client's dedication to quality, equality,
and sustainability. Therefore, India is a better choice to host the new manufacturing plant for the
client.
Conclusion
In conclusion, from the recent research and reviews, India stands as the best location for
the client's new manufacturing facility. Some of the factors that make this area an excellent
location are the presence of a great pool of trained workers, cheaper labor costs, foreign
investment incentives, intellectual property, and worker and environmental protection
regulations. Although Mexico would be a good alternative, it is not as ideal as India for the
client's new manufacturing site because it does not have the same legislation protecting the rights
of workers and the environment.

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References
IEA. (2022). General Law of Climate Change (Mexico). IEA. Retrieved September 29, 2023,
from https://www.iea.org/policies/8683-general-law-of-climate-change-mexico
Juarez, D. (2019). Mexico Manufacturing: An Overview of the Sector. Retrieved November 10,
2020, from https://www.thebalancesmb.com/mexico-manufacturing-an-overview-of-the-
sector-3575795
Khurana, T. (2020). Advantages of Manufacturing in India. Retrieved November 10, 2020, from
https://www.cleverism.com/advantages-manufacturing-in-india/
Kumar, S. (2019). Special Economic Zone (SEZ) in India: Benefits, Procedure and More.
Retrieved November 10, 2020, from https://cleartax.in/s/special-economic-zone-sez-in-
india
Kumar, S. (2020). Patents in India: How to Apply for a Patent? Retrieved November 10, 2020,
from https://cleartax.in/s/patents-in-india
Reputation. (2019). Retrieved November 10, 2020, from
https://www.strategiceconomics.com/reputation/

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Best Location for Outsourcing a Company

Best Location for Outsourcing a Company

In my role as a consultant facilitating the expansion of U.S.-based firms into foreign

rules, protections for intellectual property, and reputation.

adapting to its rapidly changing environment.

manufacturing industry. The manufacturing operations of a great number of corporations have

investment incentives, intellectual property, and worker and environmental protection

of workers and the environment.

2020, from https://www.thebalancesmb.com/mexico-manufacturing-an-overview-of-the-

Retrieved November 10, 2020, from https://cleartax.in/s/special-economic-zone-sez-in-

Reputation. (2019). Retrieved November 10, 2020, from

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