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Enrique De La Garza III

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All three of these areas are integral to the success of the globalization arena. Any company that is planning to work within, or invest in, another country has to take into account the economics, politics and culture of that environment. Cultures in China for example vary from area to area as do the politics and economics. So there really isn’t a one size fits all approach that can be taken in regard to globalization.

Personally, I have seen these three things affect companies on an everyday basis. I live in Brownsville, TX which is situated on the border of Mexico so much of the economy on both sides of the border is based on globalization as industries are constantly working with each other. Maquiladoras (manufacturing plants in Mexico that are run by companies located in the United States that ship/transport products from Mexico into the United States to be distributed around the world) are still a vital part of the economy over here and you may not know it but they are also connected to the rest of the country as well. My father operates a plant in Mexico and has to deal with the economics over there as there are different requirements to meet for the employees in the plant. While the economy is not as big and stable as other countries there are still requirements to meet that will secure the employment of personnel in specific companies.

Additionally, the culture is quite different in Northern Mexico then in other areas as the same can be said for this part of Southern Texas in comparison to the rest of Texas. In order for companies to be successful, for the globalization process to be successful, these companies need to have personnel who understand the culture, who come from this culture to interact with employees and in turn the union. A company that decides to invest resources in Mexico will not initially know that their employees will have all the Mexican holidays off as a requirement and prior to their establishing operations in Mexico all of these requirements will be discussed and itemized with the union (which is one of the political entities that exists).

Investing in a country that has an unstable political climate, as does Mexico, has its drawbacks. There are specific ways that business needs to be conducted and as recently happened due to the pandemic, if the union decides on something there is no option to go against the decision. Plants in Mexico recently just opened for business on May 30 after almost 3 months of being entirely closed down. There were secondary effects of not being able to receive products that were needed which in turn continued to back up ports in China.

Ultimately companies that invest and operate in developing countries need to understand that economics, politics and culture are interconnected. There is not a way to focus on only one aspect and hope that ensures the success of your business.