Green Gaint Case Study

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Jolly Green Giant! Green Giant decision to move to Mexico is being seen in both as an advantage or a disadvantage. People are shocked or shook up by change and Green Giant moving it means change, either good or bad at that. I think that if the Green Giant does move to Irapuato, Mexico it will be beneficial to the U.S. and for Mexico. The Irapuato Mexican community would benefit from the Green Giant moving. It would add jobs and better the economy, it would be at slow start, but improvements can grow and increases in other areas can too. As the article said the biggest issue with moving to Mexico from California would be the taxes, and the rate at which they can pay their employees. Minimum wage in the California is $7.50 and they could pay $0.65 an hour in Mexico. Green Giant would be saving $13,200 per worker if they moved. Even with the offer of $0.65 an hour that is still higher than the minimum wage in Mexico. Saving money is not the only reason to move however. Mexico is known for its agricultural economy and plenty foods it produces. The soil and weather conditions excellent for growing and harvesting the vegetables. Unfortunately, they would have to dig for the water but they had to do that in California too. The move to Irapuato would have great social impacts as well. Green Giant is going to have to pay the property tax for the 6,000 acres of land, in which, returns back to the community of Irapuato, Mexico and goes forth to the educational systems and the physical infrastructure of the community. It would increase the standards of living and create eventually a middle class. The United States would also benefit from them moving to Mexico too because from the export of goods designed for the middle class in Mexico that would be created, and from improved competitiveness in the world economy, as low cost labor would be combined with capital and
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