Word: costs
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...reason GM Mexico has remained profitable while mounting losses have pushed the parent company's U.S., Canadian and European operations to the brink of disaster boils down to the lower cost of doing business in Mexico. GM and other automakers, including Ford and Chrysler, have managed to keep the cost of production south of the California and Texas borders at Third World levels, owing largely to Mexico's weak unions...
...With such a dramatic cost advantage to making cars in Mexico, it's no surprise that GM plans to max out production in that country as it struggles to shake off Chapter 11 bankruptcy protection and return to profitability...
...letter, Smith wrote that the global economic downturn forced FAS to reexamine all of its spending, including the compensation costs that make up nearly half of the School's operating budget. He said that previous cost-cutting measures such as the early retirement program, salary freezes for faculty and exempt staff, limitations on new hiring, and offers of reduced hours did not achieve the necessary budget reductions...
...Another complication is that the average cost of employer-provided plans varies widely across the country. In 2006, for example, the average employer-provided plan for a family in New Hampshire cost $12,686; in Hawaii, the average was only $9,426, according to statistics compiled by the Kaiser Family Foundation. So it is no surprise that lawmakers from states where health coverage is more expensive are wary of the idea. A way around that problem, says Massachusetts Institute of Technology economics professor Jonathan Gruber, would be to have the taxes kick in at different levels in different states. "Otherwise...
...Presented with an opportunity this week to claim that foothold, however, most major oil companies were unwilling to commit. The need for military style security and expansive insurance in light of ongoing terror attacks would require foreign investors to add millions to the cost of operating in Iraq. Massive capital investment is required to develop the industry's capacity in Iraq, and militant trade unions that have flexed their muscles through strikes in recent years - and which bitterly oppose foreign oil companies taking charge of developing Iraq's fields - add to the headache facing potential investors...