Navistar Company Case Study

Document Type:Coursework

Subject Area:Business

Document 1

This article will look at trade between Navistar and Mexico. The Company was founded in the year 1902 as International Harvester Company before being rebranded in 1993 to its current name Navistar International Corporation. Navistar has got two segments; the truck segment and the financial section. The truck section involves manufacturing commercial trucks, workhorse chassis for step vans and motor homes. It also makes IC Bus both for schools and for commercial use. He previously served as President and Vice president at General Motors in different regions. He was also Vice President of Motors Liquidation Company (Bloomberg, 2018). Its Vice President is Walter G. Borst who is also the Chief Financial Officer. He has served in various capacities in different places. Likewise it has been easier for Navistar to trade with Mexico taking advantage of this cordial relationship between the two states.

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Besides this, the proximity of the two countries has also played important role. Mexico boarders America to the south close to Texas State. All these factors have led to relationship between Navistar and Mexico. Trucks made by Navistar were not fuel-efficient and were substandard in terms of fuel emission. The Mexican market favors automotive industry. The multi-billion dollar wave to assembly plants has reduced cost of manufacturing automobiles in Mexico. This has made Mexico to rise in rank to become the top exporter of Cars to America realizing an export of $40 to $70 billion dollars. America imports more cars from Mexico compared its import from Japan and Canada. The demand for Mexican cars has also increased by 36% since 2007. It is surprising that Mexicans intrinsically respect business transactions. Therefore there are few cases of frauds.

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Moreover, they have a short personal space when it comes to physical contact through greetings. They have long handshakes and it is common to see men patting backs at work places and also hugging women freely. In fact men kiss women on the cheek on their first encounter. It has transformed its reputation to become a land of investment as determined by the political environment (Hagena, 2010). Mexican government has improved infrastructure in areas like transport, telecommunication and energy. It has risen in rank to be the 13th biggest country in the world in terms of economy and 11th in terms of the purchasing power. This has of course attracted many people to trade in Mexico. However there are stringent trade policies. It is undoubtedly that transport is essential to almost all sectors of the economy.

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Therefore this Company is likely to be in existence for long as automobiles are frequently demanded. Also road transport is common among many people therefore it creates need for Navistar’s products. Once employed here. I am guaranteed of stability of my job for long duration. bloomberg. com/research/stocks/people/person. asp?personId=652755&privcapId=291250 Bloomberg. Navistar International Corporation: Private Company Information - Bloomberg. Retrieved from https://www. susanburnsllc. com/cultural-differences-to-do-business-in-mexico Dallas Morning News. February 10). The comparative advantage of NAFTA and the global supply chain. Retrieved from https://www. Doi: 10. w7429 Morningstar. Samara A. Strycker of Navistar International Corp Executive Profile. Retrieved from http://insiders. tmf-group. com/en/news-insights/business-culture/top-challenges-mexico/.

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