Chat with AI
Global Business Today 7th Edition by Charles Hill
Edition 7ISBN: 9780078137211Global Business Today 7th Edition by Charles Hill
Edition 7ISBN: 9780078137211 Exercise 2
Reread the Management Focus on Vizio and answer the following questions:
a) Why is the manufacturing of flat panel TVs migrating to different locations around the world?
b) Who benefits from the globalization of the flat panel industry? Who are the losers?
c) What would 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 thing or a bad thing?
d) What does the example of Vizio tell you about the future of production in an increasingly integrated global economy? What does it tell you about the strategies that enterprises must adopt in order to thrive in highly competitive global markets?
a) Why is the manufacturing of flat panel TVs migrating to different locations around the world?
b) Who benefits from the globalization of the flat panel industry? Who are the losers?
c) What would 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 thing or a bad thing?
d) What does the example of Vizio tell you about the future of production in an increasingly integrated global economy? What does it tell you about the strategies that enterprises must adopt in order to thrive in highly competitive global markets?
Explanation
Verified
Verified
a) The manufacturing of flat panel TV migrated to different locations around the world because both the availability of capital and labor was not present at the same place. American companies invented the process of making flat panel TVs. The making of the glass panels is highly capital intensive as they must be created to extremely precise dimensions and kept extremely clean. The cutting and assembling of the panels is highly labor intensive. The main market is the United States. Since American companies did not pursue the technology, so, Japanese companies did. Japanese built the capital intensive portion in Japan and shipped the parts to Mexico. Mexico has cheap labor and is a short distance from the US. So, the fully assembled TVs could be transported and sold easier. Japan's relapse into its "lost decade" of economic stagnation resulted in portions of the capital intensive process being moved to Korea. The Asian Financial Crisis of 1997 resulted in some of the capital intensive production moving to Taiwan and now China.b) Consumers benefit from the globalization of the flat panel display industry as they get quality technology TV, which is assembled in different parts of the world.
American employee, who were working in flat TV company were losers as the flat TVs started making in East Asia and Mexico based on their technology.
c) If U.S government allows the flat panel displays sold in the United States, then, it would result in less competition, higher prices, and lower quality.
If it allows the flat panel displays to be made there, then, it might result in more American jobs in the short run, but, may not be beneficial in the long-run because of the increased tariffs.
Thus, on the whole, this would not be a good step.
d) Vizio shows that production is increasingly becoming incomprehensibly complicated as companies sometimes create products made of components from dozens of countries, while many processes such as logistics, engineering, and manufacturing are completely outsourced. Each component is made wherever it is cheapest to manufacture and transport to the place of assembly. Due to outsourcing, the company has less than 100 employees, but has over $2 billion sales.
This shows that in today's highly competitive global market, companies must adopt the most efficient and lowest cost methods in order to thrive.
American employee, who were working in flat TV company were losers as the flat TVs started making in East Asia and Mexico based on their technology.
c) If U.S government allows the flat panel displays sold in the United States, then, it would result in less competition, higher prices, and lower quality.
If it allows the flat panel displays to be made there, then, it might result in more American jobs in the short run, but, may not be beneficial in the long-run because of the increased tariffs.
Thus, on the whole, this would not be a good step.
d) Vizio shows that production is increasingly becoming incomprehensibly complicated as companies sometimes create products made of components from dozens of countries, while many processes such as logistics, engineering, and manufacturing are completely outsourced. Each component is made wherever it is cheapest to manufacture and transport to the place of assembly. Due to outsourcing, the company has less than 100 employees, but has over $2 billion sales.
This shows that in today's highly competitive global market, companies must adopt the most efficient and lowest cost methods in order to thrive.
Global Business Today 7th Edition by Charles Hill
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
