Week 1 Discussion
Supporting Lectures:
Review the following lectures:
- Global Trade I
- Global Trade II
Discussion Questions
Before beginning work on this discussion forum, please review the link “
Doing Discussion Questions Right
” and any specific instructions for this topic.
Before the end of the week, begin commenting on at least two of your classmates’ responses. You can ask technical questions or respond generally to the overall experience. Be objective, clear, and concise. Always use constructive language, even in criticism, to work toward the goal of positive progress. Submit your responses in the Discussion Area.
Introduction:
By the due date assigned, respond to the assigned discussion questions and submit your responses to the appropriate topic in this Discussion Area. Respond to the assigned questions using the lessons and vocabulary found in the reading.
Select any one of the following starter bullet point sections. Review the important themes within the sub-questions of each bullet point. The sub-questions are designed to get you thinking about some of the important issues. Your response should provide a succinct synthesis of the key themes in a way that articulates a clear point, position, or conclusion supported by research. Select a different bullet point section than what your peers have already posted so that we can engage in several discussions on relevant topics. If all of the bullet points have been addressed, then you may begin to reuse the bullet points with the expectation that varied responses continue.
Tasks:
Question 1:
Analyze the global vision of Li Shufu, owner of Volvo.
Question 2:
Evaluate the success or failure of a multinational corporation (MNC).
Submission Details:
To support your work, use your course and textbook readings and also use the
South University Online Library
. As in all assignments, cite all sources in your work and provide references for the citations in APA format.
Your initial posting should be addressed at 500–1,000 words as noted in the attached PDF.
Global Trade I
Global trade is affected by social, political, and economic conditions. There are a multitude of reasons
for a corporation to outsource, create a cross-border joint venture, or decide on offshoring. The
leaders of the organization are tasked with making many decisions about the future of their
corporation. The WTO is at the forefront of the rules that govern trade between nations.
According to Vance and Paik (2015):
Besides their membership in intergovernmental organizations, governments individually and
collectively (through bilateral and multilateral agreements and regular meetings) have a central
role in regulating economic activity and can exert tremendous in�uence on workforce
management practices. We now examine these individual and collective forms of government
in�uence. (p. 11)
Individual Governments: A key purpose of government is to secure and protect the well-being
of its citizens, including their economic livelihood.
Multilateral Agreements: Beyond the in�uence of a single government, two or more
governments commonly form agreements and treaties that serve to promote cross-border
commerce and economic development for all governments involved.
The North American Free Trade Agreement (NAFTA)
The Association of South East Asian Nations (ASEAN) Free Trade Area (AFTA)
The Mercado Común del Sur (MERCOSUR, the Southern common market, involving
Argentina, Brazil, Uruguay, and Paraguay, as well as other South American countries, as
associate members)
The European Union (EU), which is the most integrated multilateral agreement between
governments, with an extensive governing and regulatory structure affecting
organizations in all EU current and prospective member countries as well as companies
doing business within this huge economic bloc
All of these multilateral agreements have increased trade across borders with accompanying
workforce implications (Vance & Paik, 2015, p. 12).
Bene�ts of International Trade Agreements
Review each tab to learn more.
Additional Materials
From your course textbook, Managing a Global Workforce: Challenges and Opportunities in
International Human Resources Management, read the following chapters:
Introduction and Overview
Cultural Foundations of International Human Resource Management
From the South University Online Library, read the following articles:
The World Trade Organization and the Future of Multilateralism
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=bth&AN=112712433&site=eds-live)
Reaping and Sharing the Bene�ts of Global Trade
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=fsr&AN=128591950&site=eds-live)
https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=bth&AN=112712433&site=eds-live
https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=fsr&AN=128591950&site=eds-live
Global Trade II
The ILO is dedicated to establishing social justice and internationally recognized human and labor
rights. The WTO has a strong interest in trade between nations. As you well know, �rms from China
and India are moving a lot of their production to the United States and other countries in order to cut
costs. With the opportunity to open manufacturing plants in the United States and other countries,
these companies expect a signi�cant savings. Japan also has interest in offshore sourcing to other
countries since Japan is experiencing a skill and labor shortage.
According to Vance and Paik (2015):
Offshore outsourcing increases MNCs’ strategic �exibility by either contracting their
manufacturing processes outside the home country or by forming joint ventures. The
development of a dynamic organizational network through contracting and joint ventures
enables �rms to maximize the specialized competence of individual operations and to use human
resources more effectively that would otherwise have to be accumulated, allocated, and
maintained by a single organization. This development means a company’s global
competitiveness will increase due to its ability to perform a certain value-creation activity in a
country where it can be produced most ef�ciently. (p. 101)
As you consider the reasons for an organizational shift, outsourcing, offshoring, and offshore
outsourcing, devise a list of US-based companies that are taking advantage of these strategies. How
would you prepare for the global expansion? As an HR professional, you will be required to manage
the global workforce in these international settings.
Advantages and Disadvantages of Offshore Sourcing
According to Vance & Paik (2015), “Although immigrant workers represent one solution to the
declining number in developed countries’ labor supply, offshore sourcing is another option that can
achieve the same objective by utilizing the overseas workforce without physical transfer of workers”
(p. 100).
Advantages Disadvantages
Opportunity for expansion or strategic
�exibility
Cultural differences or issues
Reduces labor costs Communication barriers
Increases the talent pool Security issues
Advantages Disadvantages
Reduces the cost of produced goods
Economic threat in home country or
labor force issues
Tax advantages Intellectual property issues
Additional Materials
From your course textbook, Managing a Global Workforce: Challenges and Opportunities in
International Human Resources Management, read the following chapter:
Changes and Challenges in the Global Labor Market
From the South University Online Library, read the following articles:
Global Trade in Services: Fear, Facts, and Offshoring
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=cat06146a&AN=sou.205804&site=eds-live)
Bringing Workers’ Rights Back in? Propositions towards a Labour-Trade Linkage for the Global
South (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=a9h&AN=100319498&site=eds-live)
https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=cat06146a&AN=sou.205804&site=eds-live
https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=a9h&AN=100319498&site=eds-live