There were a number of different problems at Five Rivers Electronics and the Thomson Plant. One of the problems is that they started to have more competition from foreign competitors, especially from companies in China. Their companies could not produce TV’s and other products for nearly as cheap of a price that Chinese companies could. This meant that they were losing business as cheaper foreign products started to enter into the market. They also lost some contracts because they could not produce at a low enough price. At Five Rivers Electronics, they focused on more high end products. Even with this, the company was facing a lot of competition. Five Rivers Electronics made a case against many of the Chinese companies because of unfair trading, …show more content…
Although Walmart may be able to provide lower prices for consumers, they are causing many of the American companies to need to move overseas in order to make a profit. This means that many of the high paying jobs in factories are all being sent over to China where they can pay the workers less. The jobs that are being created are oftentimes in stores like Walmart, which pay less than factory jobs. There would also be some jobs created for helping ship and trade with Chinese companies, but overall there wouldn’t be many high paying jobs that would offset the cheaper prices. Companies that cannot send their factories overseas are being forced to go out of business. Not only the factories are going out of business, but smaller stores can no longer keep up with bigger store chains like Walmart. They cannot sell at the same low prices that Walmart can, which causes them to lose business and ultimately go out of business. Also, when pricing products, when they use an opening price point, they are tricking consumers into thinking that they are getting a better price on all of their products, not just the products that are marked down