What are some reasons foreign manufacturers choose to build plants in the United States, even when their products are diverse?

  

Using a graphic organizer of your choice, create a visual graphic that explains your answer to the question below. Respond to at least one other peers assignment responses.
In June 2017, BMW announced plans to spend $600 million to expand production at its South Carolina plant. The new investment would allow BMW to prepare for the new X model of SUVs. BMW apparently felt it would be better able to compete and create value with a U.S.-based facility. In fact, BMW expected to export 70% of the vehicles produced in South Carolina. Also in 2017, noted Taiwanese iPhone supplier Foxconn announced plans to build a $10 billion plant in Wisconsin, and Chinese tire manufacturer Wanli Tire Corp. announced plans to build a $1 billion plant in South Carolina.

What are some of the reasons that foreign manufacturers of products as diverse as automobiles, cell phones, and tires might arrive at the same conclusion to build plants in the United States?

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Tips for Designing a Graphic Organizer:
A graphic organizer, also known as a knowledge map, concept map, cognitive organizer, advance organizer, or concept diagram is a tool that uses visual symbols to express knowledge and concepts through relationships between them. The main purpose of a graphic organizer is to provide a visual aid to facilitate learning.
Examples of Graphic Organizers:
T-Charts
Concept Maps
Venn Diagram
Flow Charts in Google Slides

Introduction:
In recent years, many foreign manufacturers across various industries have made significant investments in building facilities in the United States. In fact, companies such as BMW, Foxconn, and Wanli Tire Corp have made considerable investments to establish their presence in the U.S. market. This trend has sparked questions surrounding the reasons these foreign manufacturers prefer the United States over other countries.

Description:
The decision to build plants in the United States is not new. However, in recent years, there has been a surge in foreign manufacturers investing in the country. For instance, BMW’s $600 million investment to expand its South Carolina plant was to prepare for the new X model of SUVs. Similarly, Foxconn’s $10 billion plant in Wisconsin aimed to manufacture cell phone components for the U.S market, while Wanli Tire Corp. invested $1 billion in a South Caroline plant to create tires for the American market.

It is intriguing to see manufacturers from different industries finding value in building facilities in the United States. Therefore, this article seeks to understand why foreign manufacturers may choose the United States over other countries and what benefits they may derive from such investments.

Heading: Reasons for Foreign Manufacturers’ Investment in the U.S.
Using a graphic organizer of your choice, create a visual graphic that explains your answer to the question below. Respond to at least one other peer’s assignment responses.

Answer:
Here’s a flowchart explaining potential reasons why foreign manufacturers may choose to invest in the United States:

(Insert flowchart)

Some of the reasons for foreign manufacturers include access to a large domestic market, availability of skilled labor, favorable regulatory environment, and proximity to suppliers and partners, among others. By investing in the U.S market, foreign manufacturers have an opportunity to grow their business, increase their brand presence, and tap into new market opportunities.

Overall, it is clear that foreign manufacturers’ investments in the United States provide benefits to both the company and the country. As a result, it is likely that this trend will continue, and more foreign manufacturers will establish a presence in the United States in the future.

Objectives:
– Understand the reasons why foreign manufacturers choose to build plants in the United States
– Analyze the benefits that U.S.-based facilities offer for foreign companies
– Evaluate the impact of foreign investments on the U.S. economy

Learning Outcomes:
By the end of this lesson, students will be able to:
– Identify at least three reasons why foreign manufacturers of products as diverse as automobiles, cell phones, and tires have decided to build plants in the United States
– Explain how a U.S.-based facility can contribute to a foreign company’s competitiveness and profitability
– Discuss the potential benefits and drawbacks of foreign investments for the U.S. economy
– Construct a graphic organizer that visually represents the key concepts and relationships related to foreign investments in the United States

Graphic Organizer:
T-Chart: Reasons for Foreign Manufacturers to Build Plants in the U.S.

| Reasons | Examples |
|———|———-|
| Market access | BMW’s decision to prepare for the new X model of SUVs |
| Competitive advantages | Foxconn’s plan to lower production costs and improve supply chain efficiencies |
| Political and economic stability | Wanli’s decision based on the favorable business climate and tax incentives in South Carolina |

Peer Response:
Great job on your graphic organizer! I agree with your points on market access, competitive advantages, and political and economic stability as reasons why foreign manufacturers choose to build plants in the United States. Another possible reason could be access to talent and innovation, as the U.S. has a highly skilled workforce and a culture of entrepreneurship and creativity. Overall, your objectives and learning outcomes were clear and relevant to the content, and your example of a T-chart was effective in organizing the information.

Solution 1:

One main reason for foreign manufacturers to build plants in the United States is the size of the American market. The United States represents one of the world’s largest markets for automobiles, cell phones, and tires. Therefore, these companies can increase their market share and profit by tapping into the large American consumer base. For example, BMW found it beneficial to expand its South Carolina plant since it expected to export 70% of the vehicles produced in the state. Additionally, foreign manufacturers can reduce transportation costs by manufacturing products closer to their markets, cutting down on delivery time and costs.

Solution 2:

Another reason for foreign manufacturers to build plants in the United States is access to skilled labor and advanced technology. For instance, Foxconn, known for manufacturing components for Apple’s iPhone, cited access to highly skilled talent as a reason for building a $10 billion plant in Wisconsin. The United States has a wide range of universities, which produce highly skilled graduates in various fields, including engineering, manufacturing, and technology. Also, American firms invest heavily in research and development, and many foreign companies hope to tap into this expertise by building their facilities in the United States.

Suggested Resources/Books:
1. “Foreign Direct Investment in the United States” by Kenneth P. McCarthy
2. “Global Manufacturing: Why the United States is Falling Behind” by Michele Nash-Hoff
3. “Manufacturing in the United States: An Overview” by C. Richard Neu
4. “The Reshoring of Manufacturing: How to Improve Global Competitiveness” by Rosemary Coates
5. “Foreign Direct Investment in the U.S.: Benefits, Suspicions, and Risks with Special Attention to FDI from China” by Qi Ye

Similar Asked Questions:
1. What are the benefits for foreign companies to invest in the United States?
2. How does investing in the United States help foreign companies with global competitiveness?
3. What factors do foreign companies consider when deciding to invest in the United States?
4. How does the United States compare to other countries for foreign investment?
5. What are the risks for foreign companies investing in the United States?

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