argue to keep Carolcon metals in Minnesota! Carolcon Metals in Minnesota is in t
ID: 2669102 • Letter: A
Question
argue to keep Carolcon metals in Minnesota!Carolcon Metals in Minnesota is in trouble. For the past 5 years, they have been losing ground to the competition in an especially fierce industry. All competitors have moved mining and production facilities to countries with lower wages and fewer environmental and safety restrictions. Carolcon has been a stable employer for three generations in the town, and its 700 employees are one-tenth the population of 7,000 people.
However, it is faced with a sobering choice: move the mining and production facilities overseas or face greater loss of market share. The company probably will not go out of business because they manufacture a unique and patented product, but they will continue to lose profits.
The Biron Islands are a small chain of islands in the Caribbean. They have been an independent nation for 130 years. They are hoping Carolcon will consider opening a mining and production facility on Greentag, the largest and poorest island. Greentag has abundant supplies of the natural resources Carolcon Metals seeks. Also, it has an eager work force. Currently, there is 50% unemployment on Greentag, so the people there are desperate for an employer to provide wages to stem the tide of starvation and lack of medical care.
Explanation / Answer
Give tax incentives that would make up the difference between the loss in profit for Carolcon Metals to stay in Minnesota, match any other competitive incentives offer by Biron Island so that there is no need for Carolcon Metals to not move to Biron.
Also, remind Carolcon Metals that going and investing in a foreign nation is risky as you have to put down a heavy initiation investment before you can start to make profits
It is costly to ship metals which will also cut down on profit margins
It will generate negativity for the company because it is moving overseas and losing local jobs and support.
Depending on the tariff agreement, it can also mean large tariff which will cut down even more profit, so it makes no sense for Carolcon Metals to move overseas
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