GLOBAL ECON

Better Essays
Global Economic Environment
Group Presentation Written Report (Group 1)
Christy Lai Kei Kwan 12119785D
30th September 2013

Question 1
(a) How has Apple capitalized on the globalization of production? What advantages does manufacturing in China offer the company?
ANS: Globalization has been a heat topic in these past years. Many international companies will use this advantage for their own production, and Apple is definitely one of the significant examples. Below shown are the ways that Apple capitalized on the globalization of production. Firstly, Apple finds and searches subcontractors from places such as Korea, Taiwan, China and even Germany. It keeps expanding itself by improvements as well. For example, it replaced plastic screens by glass screens in 2004. Secondly, the fact that globalization has made the rules less strict, it becomes easier for Apple to set up factories in different countries. Thirdly, Apple also uses the competitive advantages of foreign locations. For example, this place is an expert of manufacturing particular device then Apple can give this certain task to it and ensures the high quality of the product. Moreover, Apple creates a lot of job opportunities. It employs 43000 people in the states and also supports another 254000 jobs. Some people may point out that jobs only increase for the workers in developing countries, but still thanks to globalization, Apple creates hope and stable salaries for those non-skilled workers. Lastly, globalization allows Apple to spread its fame to the world. Apple not only based on its own ability, but it is also assisted by the trend of globalization and becoming a legend for years.

There is a list of advantages of choosing China as a place to manufacture. The core reason will be its low labor costs comparatively. It is known that workers working in FOXCONN are earning $14 a day, which is lower than those in the states. It’s also easy to hire engineers in China. It usually just takes 15

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