In Winnsboro, South Carolina, a small Television manufacturing company resides. 6 months ago the small company called Element Electronics was supporting President Donald Trump's tariffs on imported goods from China. Now the company is fighting to keep from shutting down after the tariffs caused the price of Television parts, such as motherboards and LCD panels, to go up to a price the company can no longer afford. The result is the company was forced to lay off 126 employees and will only be able to stay in business until October when it exhausts it inventory. Element Electronics general counsel was very clear saying "There is no other place we are able to obtain these parts other than China". Element Electronics is the only mass television manufacturer in the United States.
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Questions-
1. Do you think there is anyway out for Element Electronics? Are they doomed?
My answer- I think they could possibly get out of this if they decided to raise the prices for the televisions they sell. Another way for them to be able to save themselves would be if they were able to create the motherboard and LCD screens themselves.
2. Why do you think Element Electronics supported Trump's tariffs in the first place?
My answer- I think maybe the company thought the tariffs would help them because in respones to the tariffs, China would have lowered the prices on the motherboard, LCD screens, and other vital components. If this occured then the company wouldn't be spending as much money on parts. This would allow the company to generate more income.
Replies
Well done Trey!
Yes I do think that there is a way out for Element Electronics. I think that if they sell there tellevisions at a lower price they will sell more and have the money to maybe create and produce there own LCD screens and motherboards. I think they sould bring down the prices for there tellevisions to make more sales. and then slowly raise there prices after they start selling a lot. Slowly make the cost of the tellevisions more so they can sell, but you are still making a good/decent amount of money. And this money could them maybe be used to make and build part for the motherboards and LCD screens. I think that Element Electronic supported the tariffs because they aggred with Trump, and wanted to lower the trade deflict. Which is the difference between how much a country buys from another country, compared to how much we sell to a country. So I think they agreed to the tariffs because they didn't want to buy produces at a higher price from another counrty, than sell it at a lower price to that country. Cause in the end the country you first sold your produces to are going to make more money because they are selling it to youat a higher price that what you had originally sold it to them for.
I disagree with you. The company isn't having any problems selling the TVs but they are having problems affording the materials to build the TVs. I think the only way out for them is if they increase their prices. I agree with you on the second part. They just misunderstood the tarrifs.
I agree with you I think they could get of this drought if they did something diffrent with the prices. I think that the Element Electronics support the trump's tarrifs because it could help them in the end.
I think you are completly right. Another way they would be able to get out of this would be if they found a way to produce their own materials to build the TVs.
I think Element is doomed to fail because of slow changes with tariffs, but I feel like problems like these could be stopped if we find a compromise in the first place. I believe that the company first supported the tariffs in the hopes of them not having to spend excessive amounts of cash on tv parts, but the opposite effect was caused.
That is a good way to look at things. If we had a compromise in the first place then this wouldn't have happened in the first place. I agree with you on the second question as well. The company was just trying to find a way to save some money.
I think that is Element electronics tries to fight these tariffs, they can stay in business. They can also try and find the inventory and supplies they need from other companies. If not, they will most likely go out of business if they are unable to make sales. I think the company supported the tariffs at first because they were unaware of how these tariffs would affect their company.
I agree with you. There is only two ways out of this and they are either raise the prices on their TVs or find somewhere new to get the needed materials. I agree with you on the second question as well.
I agree they may be able to save themselves, probally by rasing prices. I think it would be hard for a small company to be able to create the motherboard and screens themsleves. The materials would cost a lot of money. I agree the company probally thought the tarrrifs would help them.
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