Reference no: EM132254615
Discussion :
According to Silicon Border Development, LLC the Silicon Border aims to provide a comparable, and aspiringly better, alternative to Far Eastern high technology manufacturing hubs. Located in Mexicali, this large industrial park is being constructed on an abundancy of land with a great water source with inexpensive electricity proving to be a more cost effective and effective location for manufacturing and research.
Close to the Silicon Valley, California is offering many incentives on top of the organic benefits, to any manufacturing company around the world to relocate to the Silicone Border. 10-year corporate tax-free status, duty free trade agreements and partnerships with surrounding education and technology institutions for continued research d development make this an attractive place to be as a manufacturing company.
Western companies can use this new expansive industrial park to nearshore many facets of the manufacturing process. Companies will still have the advantages of outsourcing and offshoring through the inexpensive electricity, abundant water supply, several industry experts in close proximity and similar time zones but don't have to indulge the inconveniences of exorbitant shipping costs.
In my opinion the offshoring verses not offshoring debate will forever be an endless one as the stances will vary by individual and role in the economy/workplace.
Corporate management of a for profit business will obviously love it for the benefits of lower labor costs yet high-quality work and a global talent pool which all ultimately yields cost savings and higher profits. The run of the mill white collar worker will oppose offshoring as it, by definition, means less jobs within the company.
Offshoring continues to retain its appeal while labor wages continually increase in the Western culture so although there are some drawbacks, offshoring will remain a part of global business.
Our text supports this theory by reminding us that offshoring is beneficial for both companies involved with the arrangement. There will always be concerns and accusations of unethical business practices when offshoring to countries that have differing cultural and business practices, but I don't believe it will ever be enough of a deterrent to pass up next to free labor.
Reference
Siliconborder (2019). Silicon Border. [online]
Peng, M. (2015). Global Business (4th ed.). Boston: Cengage Learning
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