International Business Paper on Globalization, Corporate Ethics & Social Responsibility

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Gibson 1
Mike Gibson
1/9/13
Shelly Daly
INTL 5800
First Night Assignment
In the article Apple Agrees to Labor Reforms After ‘Serious’ Foxconn Violations shows a clear picture of the issues in the area of globalization. Foxconn has been producing the iPhone and iPad for Apple for some time now. What seemed to be a very beneficial deal for Apple, turned out to be a catastrophe, putting Apple in a tough position. Foxconn has been accused of poor working conditions for their employees. Many workers have complained about unfair treatment which has led to riots and 10 suicides. Also, the workers have claimed that the wages were too low. Foxconn took steps to satisfy the workers claims by increasing wages by 25% and hire more workers to make up for the previous workers overworked hours. Although Foxconn produces products for more companies than Apple, Apple takes the heat because they are the leader in technology. They have decided to take on the responsibility because their image would be damaged because they would have been viewed as an unethical company. For this reason they have decided to take steps to make things better. The issue lies in the area of production cost because if cost of production goes higher it is possible that the iPhone and iPad prices can increase as well, or Apple just takes a hit for this to satisfy their consumers

Gibson 2
and the workers at Foxconn. This situation puts Apple in a tough position and shows that being a global leader in technology isn’t always easy.
This article relates to chapter 1 and 5 in the book in many ways. The first way is that it touches on why companies engage in international business. Apples motive was to expand their sales, acquire resources, and to reduce their risk. They thought that it would be to their advantage to do business with Foxconn in making their products. The reason being was that the cost of production was very low which helped Apple to make huge profits. Another way...
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