1) Why might a company choose to produce in Eastern Europe rather than China or Mexico? As a member of the UAW, how would you view the plight of the American auto companies?
2) Consider what new challenges come from producing in foreign locations. How should wage rates be determined? What about other parts of a compensation plan such as vacation days and health care packages? Should companies participate in labor unions?
3) Consider whether expatriates who manage the foreign operations should be paid according to their home country levels, or according to host country rates. Suppose a plant has two vice presidents, one hired locally, and one sent from headquarters. How should their compensation packages be determined?