Last updated: March 16, 2019
Topic: ArtMusic
Sample donated:

LOGITECH

 

1.      In a world without trade, what would American consumers have to pay for Logitech products?

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American consumers have to pay for Logitech products which are basically computer peripherals such as mice, keyboards and video cameras that cater to the computer requirements of the electronic world.  Currently, Logitech has added hundreds of products, including game consoles, electronic gadgets for digital music and other entertainment systems.

 

2.      Explain how trade lowers cost of making computers peripherals such mice and keyboards.

 

The significant trade of Logitech is influenced by the low prices of their products that allow consumers to purchase items at an affordable price.  Such easy access to the products increases sales of Logitech products which in turn facilitates the lowering of the cost of making computer peripherals.

 

3.      Who creates more values for Logitech, the 650 people it employs in Fremont and Switzerland or the 4,000 employees at its Chinese factory? What are the implications of these observations for the argument that free trade is beneficial.

 

The 4,000 employees at its Chinese factory create more values for Logitech because this shows that the cost of production of the products is lower in China than in Fremont and Switzerland.  The implication of this observation is that free trade provides employment at a global scale that helps in generating cost-effective production of items.

 

4.      Why do you think the company decided to shift its corporate headquarters from Switzerland to Fremont?

 

Logitech most probably shifts its headquarters from Switzerland to Fremont to instill a cost-effective location for their production of computer peripherals.  Fremont must be a better place to hire employees that are willing to work at a lower salary than those employees situated in Switzerland.

 

Reference

http://www.logitech.com/index.cfm/business/&cl=us,en

 

 

 

 

 

 

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