Academic Master

Business and Finance, Economics

Effects of globalization on U.S-Mexico border trade

Globalization refers to the free and open interactions of people and movement of goods, people and services across nations (Hirst et al. 2015). In this case, it is the economic interdependent between Mexico and other countries. In the last two decades, Mexico has experienced robust growth of national economy due to globalization. In regards to this, Mexico-U.S trade restrictions and conditions have loosened. In the next five years, conditions for U.S-Mexico border trade will reduce substantially. This is because there will be alternative ways to do business from other countries rather than depending on U.S-Mexico border trade. Globalization has brought about massive developments which were largely anticipated. The growing pace of globalization has created new opportunities for businesses to expand their business activities worldwide. According to Esparza et al. (2004), globalization has resulted to the opening of Mexico’s economy to the rest of the world, and its dependence to the United States as the largest trade partner has reduced (p. 121).

Reduced tariffs and conditions will lead to the expansion of business across Mexico (Staudt, 2017). Many businesses will be aiming at exploiting that opportunity to gain maximum returns since most of its business activities will not be subjected to control by the federal government. The current period of globalization in Mexico has an increasing trend towards increasing global economic integration. The most business decision will be influenced by profit opportunity in U.S-Mexico border trade considering that Mexico’s economy is still growing. However, due to many business venturing into U.S-Mexico border trade, there will be increased competition in businesses for market share and dominance.

In order to stay in business, firms will have to develop competition tools to counteract their competitors. Since reduced conditions reflect that they will be many businesses exploiting that opportunity, firms will have to produce quality products with less cost to be able to attain customer satisfaction. Also, technological adaptation will affect business transaction since there will be increasing usage of E-commerce. Lastly, businesses will have to create the concept of outsourcing since globalization calls for businesses to work with employees from different countries.


Entrepreneurship is a transformational megatrend in current years regarding reshaping overall growth of the economy (Drucker, 2014). High rates of unemployment especially the youth has resulted in changing preferences of ways of earning income in the informal sector. It’s definite that entrepreneurship will have an increasing trend as a core factor in driving economic growth. In my context, entrepreneurs capacity will expand as the formal sector cannot create job and income opportunities for the whole society. Entrepreneurs will be needed to create jobs, introduce new products and services and general expansion of the economy. There is an increase in entrepreneur promotion structures which offer access to capital and are impactful in business startups. This has caused entrepreneurs to have an easier pathway for catering for the cost of capital and resulted in more individuals venturing into entrepreneurship.

In order to change the face of entrepreneurship, full government support is needed to achieve the anticipated entrepreneurship goals and objective (Mugler, 2000, p. 151). The state government should promote products and services from local entrepreneurs both in the local market and international market and impose supportive regulatory. Also, the state should reduce the tax rates imposed to entrepreneurial ventures as well as providing necessary resources and conducive environment for entrepreneur growth. Sources of capital both from the government and other lending institutions should be increased, and interest rates reduced to motivate individuals to venture into self-employment. Programs to train the youths on how to start, maintain and manage business should also be introduced.

In the United States, there is increasing the growth of a supportive environment that is essential to nurture successful entrepreneurs. The U.S have had a good entrepreneurial culture and advanced funding systems which serve as founding steps for successful businesses. Access to funding resources in the U.S has greatly improved and have spearheaded in the creation of a new class of entrepreneurs. The current regime has offered a supportive environment by creating supportive regulatory and policies which promote entrepreneurs. Also, the federal government has negotiated fair market values for American goods and services. According to Peterman and Kennedy,(2003) education systems in the United States have promoted entrepreneurial mindset which has in return initiated rapid growth regarding entrepreneurship capacity, growth, and advancement.

Impacts of Tax Cuts and Jobs Act

The Act represents the revolution the United States tax code which has reduced tax obligation for businesses. This means that businesses will generate more returns in the business cycle (Morgan, 2018). Large corporations will have the supplementary income to cater for their expenses like in this case raising their wage bill in order to attract and retain employees. Small businesses can have a competitive wage structure by using the extra income earned as a result of tax reduction and implementing strategies that maximize employees’ potential. Small enterprises can opt to have a low number of employees and provide high salaries than have an unnecessarily large number of employees’. New business owners’ can have a competitive edge in attracting new employees by providing conducive working conditions and paying employees based on performance. Tying compensation per hour to the performance of employees will motivate employees to work hard and give their best for them to achieve the maximum reward. This strategy will lead to business growth, and the owners will be able to have a competitive wage policy.

Effects of social media and phones on employees

Phone and social media usage in the workplace can result in potential positive impacts. Phones and social media at the workplace can be a valuable tool for enterprises. In the other hand, it can also be a damaging factor in the overall operation of the business. The positive benefits and negative aspects of social media and phones depend on the effectiveness of utilization of each. Companies can utilize social media in creating a company profile, access to free advertising platform, and create positive public relations. Companies are faced with the need of developing social media policies which aim at maximizing the positive aspects of the phone and social media usage at the workplace while also suppressing the negative factors to its minimum.

Restricting cell phone access has an implication for the company as well as its employees. Cell phone restriction ensures that employees are focused on their duties and free from distraction hence the corporate is able to gain the required employees’ attention. As argued by Stylianou (2017), having access to cell phones can greatly decrease work performance and productivity since employees are distracted by using their devices rather than performing their assigned duties. Cell phone restriction is the first step in ensuring companies is not exposed to malware risks which have implicit potential effects on the company’s network.

The new upcoming challenge will be adjusting to the changing face of employment laws. New employment laws will seek to exploit the employers while benefiting the employees. Employees will have great freedom regarding employee engagement. Modern business will have to instill measures that seek to address employees terms and maximize the benefits of labor provided.

Eight-hour workday

I believe the 40 hour work week should change. The eight-hour workday was generated in the 18th century due to the rise of industrialization. This business operation model mostly serves best the employees in the industrial sector since after work they do not provide extra labor (Smith et al. 1998, p. 217). However, white-collar employees work outside the confined time. In reality, the eight-hour workday only exists on the constitution and its practiced on everyday work life. Due to high demands and rise in the cost of living, the 40 hour week should change in order to increase productivity and aid employees to be fairly compensated for work done outside the workplace.


Dreher, S. (2014). Social media and the world of work: A strategic approach to employees’ participation in social media. Corporate Communications: An International Journal19(4), 344-356.

Drucker, P. (2014). Innovation and entrepreneurship. Routledge.

Esparza, A. X., Waldorf, B. S., & Chavez, J. (2004). Localized effects of globalization: the case of Ciudad Juarez, Chihuahua, Mexico. Urban Geography25(2), 120-138.

Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.

Morgan, J. (n.d.) (2018). Economic Impacts of the Tax Cuts and Jobs Act | JPMorgan Chase. Retrieved from

Mugler, J. (2000). The climate for entrepreneurship in European countries in transition. The Blackwell handbook of entrepreneurship, 150-175.

Peterman, N. E., & Kennedy, J. (2003). Enterprise education: Influencing students’ perceptions of entrepreneurship. Entrepreneurship theory and practice28(2), 129-144.

Smith, L., Folkard, S., Tucker, P., & Macdonald, I. (1998). Work shift duration: a review comparing eight hours and 12-hour shift systems. Occupational and environmental medicine55(4), 217-229.

Staudt, K. A. (2017). Free trade?: Informal economies at the US-Mexico border. Temple University Press.

Stylianou, E. (2017, October 19). Negative Effects of Social Media in the Workplace. Retrieved from




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