Q2. " Flat -panel Televisions and the Global Economy”
Difetto is a U. S. company founded in 2002 simply by William Wang, Vizio CEO, with the concept that everyone warrants to own the most up-to-date technology. It is a producer of consumer electronics, mainly produces tv sets. It increases fast inspite of a limited range of staff. At this point, there are more than 160 staff and it remains the first American brand in over a decade to lead in U. T. LCD HIGH DEFINITION sales.
This passage offers mentioned two main problems, which are associated with what I have learnt in the lecture. They may be globalization of production and the reasons for businesses to become intercontinental.
1) Globalization of creation
Vizio provides achieved the positive effect of creation. Globalization of production means sourcing of goods and providers from places around the world to be given national variations in the cost and quality of factors of production, for example , terrain, labor, capital, and strength. Vizio resources the components of televisions around the globe. It supply panel, electric components, and processors from South Korea, China, and United States respectively. Assembly of TV is Mexico, although final product design, product sales, and customer care are in California. A final products are offered in stores, such as Circuit City or Wal-Mart.
Globalization of production makes corporations more competitive by increasing their top quality or volume level, and reducing their costs. According to William Wang, Vizio CEO, he can undercut his competition because his overhead can be low. The business has about 85 employees and they are primarily responsible for tech support team or anatomist. It outsources manufacturing to Asia because there are low-cost, for-hire factories.  Because of reduced cost and good quality TV, this allows Difetto to compete with it competitors, e. g. Sony, Samsung, and Panasonic more effectively.
2) Reason to get international – proactive & reactive
There are some pursuits for Difetto to become intercontinental. The aggressive reason why Vizio become foreign because it can generate greater profits by reducing costs of obtaining resources. By simply souring the television components worldwide and less expensive in labor and industrial facilities in South america, Vizio gain advantages to lower its total cost. From Vizio's point of view, greatly reduced production cost cause it in a position to grant lower selling price of TELEVISION SET sets to customers. This becomes Vizio's competitive benefit and enables it to beat the competitors- Volvo, Samsung, and Panasonic. Via customers' perspective, they are benefited from falling price and improved living standard because they can delight in high quality flat-panel TV. The reactive purpose is because of the competitive pressure in household market. There are many competitors in the us, for example , Fiat, Samsung, and Panasonic. In order to survive, Vizio has to Difetto has to boost its competitive advantage. Consequently , it supply suppliers from the components over the world, which can offer low cost and high quality items. This makes Vizio's TV become competitive and attract a large number of customers to get its products. Globalization also has its pros and cons. One of the advantage globalization is that competitions can boost the quality of goods. Since Vizio now have to compete with competitors from worldwide, it has to present customers with better flat panel TV than Sony, Samsung and Panasonic. As well, competitions pressure Vizio to develop more innovative products to be able to attract more customers to obtain its products. Clients are as a result benefited under globalization.
However, globalization causes companies to lay off employees in home country. Since many manufacturing work are outsourced to Cina or Mexico, which can provide low cost labor and industries, employees in home countries are let go because of their high labor expense or the factories in country are closed down, leading to unemployment.
As we have a trend toward globalization,...