As a Mexican small-business owner, explain why you would want General Motors to build an assembly plant in your village?Maintaining Peace and Security of Nations, 1963-Present
If I were a small business owner living in Mexico I would of course love for General Motors to build an assembly plant in my village for many reasons.
A large American company like General Motors establishing an assembly plant in Mexico would mean that in some ways the US and Mexico would have to collaborate on a positive level since they would be working together.
In addition, a large business like GM would bring so much to the economy in Mexico. Not only would hundreds of people get well paying jobs but other businesses would flourish as well. These businesses range anywhere from car repair shops, gas stations, restaurants, etc.
This depends to some extent on what kind of a small business you have, but the general answer goes like this:
Any time that you have a big assembly plant or other source of jobs come to an area, it will help just about all the businesses in the area. All of the workers will be making more money than they had been and so they will be able to buy more goods and services from businesses in the area.
So, for example, if you have a car repair place, more jobs means more people with cars needing your services.
We assume that the Mexican small-business owner is concerned only about his or her business prospects and success. The business owner is not concerned with the technical or commercial feasibility of setting up the plant, or how attractive this proposition is for General Motors.
As an owner of a small business in a village in Mexico, or any other country, I would very much welcome General Motors setting up an assembly plant in my village, as it is likely to increase general prosperity level in my village and in this way offer many lucrative business opportunity to me.
To begin with, general motors will buy a large piece of land in the village driving up the land prices. This will definitely enable people in the village including, perhaps, me to sell their land at lucrative prices. Then there will be lot of direct employment provided to people in the village during construction as well as operation phase.
Then General Motors will create infrastructure facilities for its assembly plant as well as for its employee. These facilities like roads, medical facilities and schools will be available to people in the village.
Then there will many people employed by the company who will settle in the village. This will add to the general economic activity and prosperity of the village.
All these benefits will accrue from activities of the General Motors assembly plant, as well as other ancillary industries that will be set up in or near the village to supply component and services to the General Motors plant.
Thus there will be general increase in prosperity and economic activity in the village offering me many new business opportunities. In addition I may also be able to set up a new business to supply components or services to the General Motors assembly plant.