Why Is the Manufacturing of Flat Panel Tv’s Migrating to Different Locations Around the World?

Topics: Flat panel display, Display technology, Cathode ray tube Pages: 2 (516 words) Published: October 6, 2011
A. Why is the manufacturing of flat panel TV’s migrating to different locations around the world? Vizio’ TV contains a panel from South Korea, electronic components from China, and processors from the United States, and it is assembled in Mexico. Vizio’s managers scour the globe continually for the cheapest manufacturers of flat panel displays and electronic components. They move to the developing countries to manufacture their products because the labors’ wages are lower than the United States, so they can reduce the cost of the products. Another reason is the declining trade and investment barriers between countries. A lot of countries reduce their tariffs to foreign business, so the businesses can exports goods and services to these countries. B. Who benefits from the globalization of the flat panel display industry? Who are the losers? Vizio Company benefits itself because they reduce the labor costs and in order to increase their profit. Consumers also benefit because they can buy the TV in a lower price comparing with other brands. The labors in foreign countries also benefit because they are hired by the company with a higher paid than they work in the domestic companies in their home countries. Some people are not getting any benefits because they lose jobs when the company moves to another country. The environment in the foreign country may be effected because manufacturing products may cause pollutants release to the environment and affect the people who live around the manufactory. C. What should happen if the U.S. government required that flat panel displays sold in the United States had to also be made in the United States? On balance, would this be a good or a bad thing? It will be a bad thing. In the short run, if the flat panel displays must be made in the United States, the total cost of the products will increase and become less competitive with other brands. Consumers will stop...
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