14 DAY TRIAL // The European Union rules and regulations imply having increased taxes for products that are being manufactured in Asia. Of course, the main purpose of this rule is to make the Europeans buy stuff that are made in, you guessed it, Europe, and shy away from the oh, so dreaded Made in China logo. But this rule applies to the countries that are a part of the European Union; those that haven't adhered yet are not subdued to this embargo.
What I believe to be the downside on this deal is that most computer electronics are made in some part of Asia, and for who might want to buy a motherboard, the price will be higher especially due to this taxing system. And another reason is for some large pocketed highly placed people to cash in from the added taxes, oh, I'm sorry, did I imply that the money from taxes goes anywhere else than where it should? Shame on me for thinking that.
Anyway, some companies have done the smart thing of having manufacturing facilities built in Europe so that these taxes won't apply to their products. Unfortunately, this is a lose-lose situation, because the labor in Europe isn't as cheap as in most parts of Asia, and that means that the products are cheaper because of not paying added taxes, but per together, their price might still be higher than the one of a product manufactured in Asia, taxes included. One of those companies is LG.Philips LCD which has opened up a module plant in the city of Kobierzyce, Poland. The plant will produce 32-inch and larger LCD TVs with an estimated annual growth from 3 million units to 11 million units by 2011.
Young Soo Kwon, president and CEO of LG.Philips LCD said in a statement: "The start of mass production and the establishment of a base in Poland have enabled LG.Philips LCD to secure a strong foundation for mutual growth with our customers in the fast-growing European LCD TV market. We were able to move quickly to meet our customers' needs in Europe, opening this plant only nine months after construction began. Through local production we plan to provide services tailored to the needs of our customers, offering a timely and stable supply of optimized products and services."