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International Business Mercedes-Benz
International Business Mercedes-Benz
MERCEDES-BENZ
4: Assume the role of Mercedes-Benz’s new chairman, Helmut Werner. Suppose that
following your recent announcements you have come under vocal criticism by several
elements of German society. One critic argues that Mercedes-Benz’s leadership in the world
automotive industry has been due in large measure to the German educational system
(supported by German taxpayers), the German transportation and communication
infrastructure (also paid for by public funds), as well as by the enduring loyalty of German
workers. A firm which has benefitted from these public goods, he maintains ought a
reciprocal obligation to include ways to contribute to a high national standard of living, rather
than to export jobs, since the export of jobs will inevitably lead to an erosion of the social
system that Germans have worked hard to build. How would you reply?
Since German auto workers were among the highest paid in the world yet worked the shortest
work week which led to incurred high production costs and global automotive sector is
becoming competitive, the decision was essential for the survival and sustainable business.
Competitive pricing can’t be possible due to the increase in production cost in Germany. Being
a German brand, we would like to expand our operation here if the situation changes. We
would request the government to take some necessary measurement for this issue of high
wages.