Case Study 1 – Globalization, writing homework help


1 – Case Study 1 – Guidelines (2016).pdf 2 – Rubric Case Study 1 (2016).pdf LA Times Article.pdf


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Case Study
1 completed
& Ideological
 Your
case study
will be due
in class on: Tuesday,
Feb 25
Due in class Thursday, Feb 25
Objective  The purpose of this case study is to assess your understanding of fundamental
principles of globalization discussed in Week 2.
Step one  Read the article distributed in class on Feb 18: 1
Li, Shan. “More U.S. Companies Opening High-Tech Factories in Mexico.” Los
Angeles Times 29 Nov 2013. Print.
Step two  Analyze
Look for evidence of the economics & ideologies of globalization discussed in Week 2 sources:
Sparke, Matthew. Introducing Globalization: Ties, Tensions, and Uneven Integration. Oxford: Blackwell,
2013. 3-15. Print.
Steger, Manfred. Globalization: A Very Short Introduction. Oxford: OUP, 2013. 103-120. Print.
“Planet Money Makes a T-Shirt.” Narr. Alex Blumberg. Planet Money. National Public Radio. 2
Dec. 2013. Online. | Video accessible from D2L class module for Feb 16.
Step three  Write a one-paragraph (minimum) response to each question below.
1. In Introducing Globalization, Sparke argues that “capitalism has four innate economic
characteristics that help explain the ways in which it has led to more and more global
interconnection” (12). Identify examples of the innate characteristics of capitalism in the LA Times
article and explain the impact these economic factors have on networks of global interdependency.
2. In Globalization: A Very Short Introduction, Steger articulates five claims intended to represent
core ideologies of market globalism (106) and justice globalism (117). Choose one claim of market
globalism and one claim of justice globalism and explain how each claim applies to patterns of
globalization found in both the LA Times article and the Planet Money video we watched in class.
Assessment  Rubric to be distributed in class on Tuesday, Feb 23.
Your paragraphs will be assessed according to the following criteria:

Structure: Does each paragraph begin with a clear and compelling topic sentence that
anchors the primary argument of the paragraph?

Use of evidence: Does each paragraph include clear and compelling evidence from course
reading/discussions to demonstrate your understanding of the dimensions of globalization
discussed in Week 2?

Ethics of authorship: Is each paragraph written in your own words, with evidence from
sources used to support key points? Don’t rely on long quotations to make your argument for
you. References should be concise and well chosen; quotations/paraphrasing should be brief.

MLA format: Is each paragraph typed in 12-point, double-spaced, Times New Roman font?
Also available from D2L: Case Study 1 module.
 Rubric for Case Study 1
Name: ___________________________________
 Well-crafted paragraphs
Use of evidence
 Understanding of
Ethics of authorship
 Professional approach to
MLA format
 Skill-building for final
Excellent – 4
Corresponds to A
Good – 3
Corresponds to B
Inadequate – 2
Corresponds to C
Poor – 1/0
Corresponds to D/F
Clear & compelling
paragraph structure with
well-developed and wellsupported topic sentence.
Paragraph structure
discernable but argument
and/or topic sentence in
need of development.
Paragraph structure
and/or topic sentences
unfocused or insufficient
to develop argument.
Absence of topic sentences
and lack of focus in
Clear & compelling
evidence of critical thinking
about required reading &
class discussion of trends in
Basic familiarity with
required reading & class
discussion of trends in
Insufficient evidence of
critical thinking about
required reading & class
Absence of critical thinking
about required reading &
class discussion.
Written in your own words
with supporting evidence
from sources used
selectively & concisely to
support key points.
Written mostly in your
own words, but tendency
to rely on paraphrase or
quotations from other
sources to make key
Weak authorship;
extensive use of other
sources to carry the
Lack of authorship;
overreliance on close
paraphrase and
Writing applies three
criteria identified for this
assignment: 12-point,
double-spaced, Times
New Roman font.
Writing applies two
criteria identified for this
assignment: 12-point,
double-spaced, Times
New Roman font.
Writing applies one
criterion identified for
this assignment: 12point, double-spaced,
Times New Roman font.
Writing applies none of
the criteria identified for
this assignment: 12point, double-spaced,
Times New Roman font.
More U.S. companies opening high-tech factories in Mexico
Faced with rising wages in China and high shipping costs, many businesses are
finding manufacturing close to home more appealing.
November 29, 2013 | By Shan Li
TIJUANA — In an industrial park five miles east of downtown Tijuana, Ariel Ceja toils in a white
room bustling with assembly workers hunched over blue tables.
A master scheduler, Ceja is in charge of all steps of production at this factory nestled inside a
cavernous warehouse. A cluster of anonymous buildings surround the facility. Nearby are pitted
roads, and just a few minutes away by car is the Tijuana airport and a university.
San Diego-based 3D Robotics moved into this once-vacant spot in June, producing affordable
drones and electronic parts destined for customers in the U.S. and around the world.
It is just one of many American companies streaming to Mexico to open high-tech factories in a
reversal of the outsourcing trend in years past. Called nearshoring, businesses are moving
production to Mexico, Canada and other nearby countries to take advantage of their proximity to
the U.S.
“Recently I have been seeing more American companies bringing production here,” said Ceja,
who started working for 3D Robotics a month ago. During the 1990s, “there were more Asian
companies coming in, Japanese, Korean, but that has changed.”
It’s not just in Tijuana. Manufacturing plants are also opening in Mexican cities such as
Guadalajara and Mexico City, bringing a wave of new jobs to a country recovering from the
economic downturn and still fighting constant drug violence.
From 2009 to 2012, foreign investment in Mexico jumped more than 50% to $7.4 billion, and
exports from foreign-owned factories also grew 50% to $196 billion, according to one industry
group that tracks maquiladoras, or assembly plants in Mexico that are owned by foreign
companies. After plunging during the economic recession, employment also has jumped 25% to
more than 2 million. According to an economic study from South/East San Diego, the
maquiladora industry is one of Tijuana’s biggest employers, behind businesses linked to its
border crossing.
“Sometime in the last year, we reached a crossover point where it became cheaper to make a lot of
goods in Mexico than in China,” said Hal Sirkin, a senior partner at Boston Consulting Group. “A
lot of American companies are looking or moving.”
The global recession and its aftermath led companies to rethink their supply chain. Faced with
rising wages in China and high oil prices, many are reconsidering the appeal of manufacturing
close to home, especially small and medium-size businesses without the bargaining clout of Apple
and Wal-Mart.
Those businesses are finding a skilled workforce for high-tech manufacturing in Mexico. The
country has doubled the number of post-secondary public schools, many devoted to science and
Li 2
technology. Former President Felipe Calderon last year bragged that Mexico was graduating
130,000 technicians and engineers a year, more than Germany or Canada.
The educated labor pool has attracted the car industry. Mexico has gained at least 100,000 autorelated jobs since 2010, according to a Brookings Institution report. Nissan, Honda, General
Motors and Ford have all announced plans to expand in coming years.
3D Robotics, which makes drones and parts priced up to $730 for civilians and tech enthusiasts,
is among the start-ups drawn to Mexico’s low costs and proximity to the U.S. The company once
manufactured its drones and kits in Southern California and China.
But Chief Executive Chris Anderson said making products overseas was a lengthy process that
meant waiting for months for merchandise to come on ships. Chinese factories also required bulk
orders that tied up a lot of the company’s capital and prevented engineers from innovating
quickly, which is vital in a tech sector such as drones.
“We decided it didn’t make sense at our scale and pace of innovation to ramp up in China,”
Anderson said.
Instead, the company looked south.
3D’s first Mexico factory in 2011 was in the three-bedroom Tijuana apartment of general manager
Guillermo Romero, who spent the first months of the test run in Mexico soldering parts and
assembling drones in his living room along with one employee.
“We started with some benches and soldering stations you can buy anywhere,” Romero said. “We
were like, ‘Let’s see what happens.'”
Sales of drones assembled in Mexico quickly grew after Romero got the hang of putting them
together, and 3D moved into its first manufacturing space last year.
The last of the manufacturing equipment was trucked to Tijuana this spring, when the company
moved to its current 12,000-square-foot facility. American engineers in San Diego design drones
that are crafted almost completely by about 60 assembly workers in Tijuana.
A walk through the cavernous warehouse that houses the factory shows 3D’s quick expansion. On
the second floor, a newly completed call center opened about a month ago, bringing customer
service in-house for the first time. Inside the assembly room, workers solder circuit boards, attach
plastic arms and test the flying machines.
“Mexico is very flexible. You can start projects here and grow them,” Romero said. “It’s very good
for start-ups.”
For California companies, Mexico can be an especially attractive bet, analysts say. The ability to
order in small batches means that designs can be changed quickly and production can be revved
up and slowed down in a matter of days instead of months.
That can be invaluable during the holidays, as San Bernardino-based Cannon Safe learned.
On Black Friday in 2008, the safe manufacturing company received a panicked call from a major
retailer that had drastically slimmed down its inventory in response the financial crash, President
Aaron Baker said. But shoppers were scooping up their safes, prompting the chain to issue
thousands of rain checks that it had to quickly honor.
Li 3
Cannon’s Mexico facility was able to increase production and deliver new merchandise within
four days, compared with weeks or months if the safes had come from China, Baker said. “That
was our ‘aha’ moment.”
Today, about 60% of the company’s safes are made in Mexico, nearly double the production levels
five years ago. Meanwhile, its China production has dropped by half, Baker said.
Although wages are higher in Mexico than in China, the relative ease of doing business and
proximity can bring costs on par or even lower. Companies find that they don’t lose valuable time
waiting for shipments. Deliveries can also be routed to another port or simply brought by truck
when problems crop up, such as the eight-day strike that paralyzed the ports of Los Angeles and
Long Beach last winter.
Companies looking to bring production closer to home rank Mexico as their No. 1 choice,
according to a survey from consulting firm AlixPartners.
The tipping point may have come last year when manufacturing costs in Mexico, when adjusted
for productivity, dropped below those in China, according to a Boston Consulting Group report.
Within two years, the average cost of production in Mexico will be 6% below China and as much
as 30% lower than countries such as Japan and Germany.
“Companies are bringing back parts of manufacturing to Mexico. They are saying, ‘We want our
manufacturing process close to our engineers, we want our inventory next to our customers so it’s
easier to ship,'” said Joe Mazza, a partner at advisory and accounting firm McGladrey in Los
Angeles. “There are also many companies in China that are not exiting China, but reducing their
manufacturing and bringing some to Mexico.”
With all its advantages, Mexico still has its fair share of problems. Companies that don’t produce
their own goods can have a hard time finding the right third-party manufacturer in a country that
can’t compete yet with China’s dense supplier base and strong manufacturing infrastructure.
Mexico also just passed fiscal reforms that include raising taxes on U.S.-owned companies and
other businesses, increasing worries that foreign firms might leave the country.
Despite these challenges, more U.S. companies will consider locating factories in Mexico in the
coming years, analysts said.
“This is the return of manufacturing in Mexico,” said Scott Stanley, senior vice president of NAPS,
which aids companies setting up factories in Mexico. “Every month it seems like there are more
and more companies moving. There is no sign of that trend slowing down.”
Copyright 2014 Los Angeles Times

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