In the modern world, large multinationals often open subsidiaries in overseas countries to make more profits and gain a significant market share. However, companies consider a number of factors mainly technological, environmental, political, legal and the availability of resources before they can set up subsidiaries abroad. Each company has its own distinct way of doing business, culture and values that workers must conform to in order to achieve the goals and preferences established by the company; therefore, in an effort to instill corporate culture, the company conducts employee training and orientation activities. Audi is one of the largest automotive companies in the world and is headquartered in Ingolstadt, Germany; therefore, it establishes some of its foreign subsidiaries in Mexico to increase its market share and overall profits. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayThe video is about the move of the automobile company Audi to introduce one of its foreign subsidiaries in Mexico and not in the United States since Mexico is a free trade zone country for the European Union (EU). In this regard, the company trains its potential workers in different sectors of the assembly industry so that they gain the experience that they will use in the new branch in Mexico. In the film, professionals like Martha Palacios, an industrial logistics engineer, is training how to manage Audi systems and her job when she returns to work in Mexico in the same position. Furthermore, to achieve standardization, Hubert Waltl, member of the executive committee, says that staff are being trained at the headquarters because they have the same processes and machines that they are installing in Mexico to ensure that new workers acquire the skills and necessary experience from the beginning that they will bring back to Mexico. Furthermore, corporate culture is a critical aspect for a company operating in the international market as it would like to maintain its brand and therefore customer loyalty. Therefore, Audi Automotive management takes Mexican workers to a training process in Germany to show them what is expected of them and how to do things the Audi way. For example, Palacios, who is studying to become an industrial logistics engineer at the Audi subsidiary in Mexico, accompanies Claus Steppan, the industrial logistics engineer, at Audi headquarters to meetings, assembly lines and warehouses where they are taught how to manage the company's systems and culture. Although the interns have acquired the necessary skills and expertise that will enable them to work effectively in Mexico, they have encountered a number of problems such as language barrier and cultural difference. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay In the era of international trade, the theory of purchasing power parity (PPP) states that the price of a particular identical good should be more or less equivalent in each country. However, to achieve this, the multinational must ensure the standardization of its products; therefore, it is essential that Audi trains its Mexican workers at its headquarters to obtain company-standard skills and experience. Additionally, different countries have different legal rules and regulations that may allow or prevent trade with other countries. Severe bottlenecks such as tariffs, bans, and quotas limit trade between two or more countries; however, Mexico and any European country are in an economic integration that allows the.
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