Essay - The Proctor and Gamble Company: Mexico 1991 Foreign Corporations Know...

The Proctor and Gamble Company: Mexico 1991

***** corporations know Mexico as a "medium risk" country, meaning that they have high local currency rates, but have low inflation and devaluation *****. In 1991, the Proctor and ***** company in Mexico faced a couple of options to upgrade and expand *****ir facilities while helping the Mexican economy at the same time. One option was to borrow money directly from the Mexican banks on an "as-needed" basis, or ***** borrow directly ***** US banks, with approval, but without direct participati***** from the United States department ***** Proctor and Gamble. These funds were needed to exp***** their manufacturing capacity, as well as modernize ***** facilities and pre-pay for advertising expenses.

***** possible alternative to this would be ***** P&G (Mexico) would postpone their upgrades to ***** ***** until they could complete it without the help of any loans, and not pay for advertising services until ***** are used. If there were not enough funds in their current budget to pre-***** for ad services, or ***** upgrade their manufacturing facilities, then ***** should not ***** borrowed. A*****her ***** might be to only borrow money to upgrade ***** expand, and wait to pay for advertising ***** needed. The third alternative might be to borrow ***** just for pre-*****ing ***** advertising *****, then using the profits from the extra marketing efforts to upgrade and expand *****ir facilities.

***** ***** society of "I want it now" mentality, people, including corporations, are not willing ***** ***** until they are financially able to begin major projects such as renovating and upgrading facilities. Recommendations for this ***** are, 1.) postpone upgrading projects until ***** are independently financially able ***** ***** them, 2.) pay for advertising services when they are needed or used, and 3.) search ***** free ways to market their comp*****/products. This plan of action allows for an increase of higher profit margins, paying other loans or debts off faster, and avoiding high local interest