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Assignment on Globalization and Outsourcing

   

Added on  2020-04-13

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Running head: GLOBALIZATION AND OUTSOURCINGGLOBALIZATION AND OUTSOURCINGName of the Student:Name of the UniversityAuthor Note:

GLOBALIZATION AND OUTSOURCING1 This debate aims to answer the questions and demands of the shareholders tothe company’s CEO. The Toro is a public company that manufactures Irrigationsupplies,landscape&turfmaintenance products. Its head quarter is in Bloomington, Minnesota,U.S. the company is working in this felid since 1914 now facing problems due to the newpolicies of the President. Shareholders’ point of view:The company is fast growing in the USA and in the other countries but the new reformsof the US president has brought problems for its shareholders. Therefore, the company’sindependent directors need to review and report the process of their management in thefields of law, finance and most importantly reputational risks for the company.The company website states that it collects taxes in all the states including Columbiandistricts. Now the policies have emphasised on the physical presence for collection oftaxes.Thewithdrawal of the Consumer Financial Protection Bureau’s director that gives thecompany being followed by the regulator added enticement to follow actions until thePresident puts state’s own appointee.The company branches in south western Pennsylvania are suffering due to the newpolicies. The job retaining employees are unsubscribing and foreseeing risk in thefuture programs of the company.In the branches of Mexico, previously the North American Free TradeAgreementenabled the manufacturers from the US migrated across Rio Grande butTrump’s policy has prevented the negotiation of NAFTA (Potrafke 2013). This haspulled down the free trade and has threatened for putting 35% tariff on the Mexicangoods. This has affected the company’s trade.

GLOBALIZATION AND OUTSOURCING2The policy has also affected the company’s trade in China. The Chinese import to theUSA has 45% tax increase.Britain is one of the biggest exporter of services which the company utilizes but inBritain, the company’s growth also has slowed down which has affected incompany’s business across Europe (Stromquist and Monkman 2014).The business in India has suffered most. India and Us has an optimistic economicrelation and it aims to be strengthened by the policies and the new administration ofUS. Since USA is the biggest market for the Indian export, the policies have affectedthe business in Indian branches largely (Coşar, Guner and Tybout 2016). The annualreport of the Indian branch has revealed that trump’s Policies have promoted greaterrestrictions on the free trade and increased tariffs on the goods imported to the USA.The branch has reported net sales of Rs.55,420.9 crores in the fiscal ended March 31,2017.The company’s work force has also been suffered for the review of H-1B visaprogramme and has raised concerns among the employees (Crane and Matten 2016).This emphasises that the company’s policy can not alter the American workers but begiven to the highest paid and most skilled employees. The clients or the consumers has reduced as well as postponed their spending on theproducts.The globalization component has made the rich more prosperous like the owners,investors and the managers but the chief shareholders like employees of the companyare suffering.The branches of Africa and middle east have reported of social injustice, poorworking conditions (Dauth and Suedekum 2015). This includes labour wages and

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