1. Trends within the handset industry with companies such as Nokia, produce low-cost cellphones which reduce the average selling price of these handsets. The case states, “ international mobile phone prices fell 35% in recent years. In the price conscious emerging markets, the basic phones were sold below $50 and there was a growing market for $25, and even $10.” Nokia captured this trend of low cost mobile phones that are cheap and disposable for consumers. The demand for low cost manufacturing has become a necessity for Nokia to survey in this thriving market. They had tremendous pressure from costs that lead to weak profitability and other companies consolidating. This introduces the second trend within the mobile handset industry to move production to Central and Eastern Europe because their labor cost were lower. This allows Nokia to sell the mobile handsets for a lower price. Nokia’s strategy is to shift production to low cost locations because their high productivity and simple taxes. They wanted to set new standards for wages, training, workplace safety, and technology transfer that was valued within society.

2. Dependent upon Nokia's image and cultural beliefs, the backlash in Germany was justifiable. Nokia was praised for keeping their company within their own country whereas other companies had offshore production. Bochum was profitable, and it was only beneficial for Nokia to close the plant to reduce the employee expense. They did not go public before their closure to prepare their workers that they will be potentially laid off. Nokia stated that announcing the closure is not their way of doing business. The plant in Bochum was very beneficial to their economy because their unemployment rate was 10.5%, which is higher than Germany’s national average. Nokia was this area’s main source of income. Pulling out of this area was unethical on Nokia’s behalf. Nations could set more governmental regulations over such manufacturing within their borders to make themselves more competitive. This can protect their citizens, and their economy while enticing multinationals to manufactory within their country. They could also improve their education systems so multinationals will be lured to their nation because their goods will be produced faster and more efficiently.

3. The biggest flaw in Nokia's approach to announcing the closure of their plant in Bochum was the timing factor. Closing operations so abruptly in Germany seemed as if the company was abandoning its employees without any prior notice announced publicly. Cultural implications should have been considered. If these cultural beliefs were taken into account, even if the closure of the plant was inevitable, Nokia could have "softened the blow". They acted irresponsibly. Damage control can be taken in many different directions. The €17 million in subsidies could be payed back, as to what was believed to be owed. Nokia could have taken efforts of reducing wages to its employees first as they were getting paid higher wages considering their contribution. "The Bochum plant was responsible for 6% of the company’s global mobile phone manufacturing and 23% of all personnel costs within its production unit.” Nokia could of taken efforts to donate money to the schools of Bochum to stimulate the next generation’s chance for finding better jobs. Building a smaller plant within that area to help decrease the unemployment rate- the new plant having lower wages. Finally, they could have paid their former employees a few months of unemployment for their sudden lose of a job due to their care-free actions.