Foxconn is the largest contract electronics maker in the world. They provide screens for almost all the phones and devices you see today. As a company they are continuing to look for other opportunities to expand their company and open more locations across the globe. The major company was looking to open a building in southeastern Wisconsin but this has raised questions from all around to whether this would be a good decision or not.
There is no doubt that Foxconn coming into Wisconsin would create a giant increase in the supply of jobs by creating around one thousand jobs. The only problem with this is there is not a high demand of jobs in Wisconsin because the unemployment rate is around 3% meaning it will be very hard to fill all the jobs that foxconn is creating. Having a high supply and low demand will create a surplus in jobs and Foxconn will have a lot of empty slots.
On a good note, Foxconn in Wisconsin is easier access to the screens. America will spend less money shipping screens from Wisconsin than shipping them from other countries. There are not a lot of substitutes for device screens which means Foxconn would not have a problem trying to compete with other companies which is beneficial for creating a new location. Around 77% of Americans own a smartphone and this number is continually growing. Foxconn is a complement to the phone companies because the more phones that are sold, the more screens Foxconn is going to sell. A location in the U.S. would do well because the demand for smartphones is high which would make any complements demand be high as well, which is good for a company like Foxconn that is trying to expand and open new locations.
While they are continuing to fight for a new location in the state of Wisconsin, there are arguments are arising if letting Foxconn in the U.S. is really a good idea. By relocating it would increase the supply of jobs and create huge sales because of the high demand for smartphones and other devices. But they would be creating jobs in the state that people might not need as well as create stress for those who are in the area of construction.
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Bosman, Julie. “Questions Emerge Over What Wisconsin Must Give for Foxconn Plant.” The New York Times, The New York Times, Oct. 2017, www.nytimes.com/2017/08/10/us/foxconn-jobs-wisconsin-walker-tax-incentives.html.
Chan, Kelvin. “What Is Foxconn? Only the World's No. 1 Contract Electronics Maker.” Chicagotribune.com, 2017, www.chicagotribune.com/business/ct-what-is-foxconn-20170727-story.html.
“Foxconn: Latest News on Foxconn | Top Stories & Photos on Economictimes.com.” The Economic Times, economictimes.indiatimes.com/topic/Foxconn.“Mobile Fact Sheet.” Pew Research Center: Internet, Science & Tech, Dec. 2017, www.pewinternet.org/fact-sheet/mobile/.