Economic Factors That Affect Apple in China and Usa

1650 Words Jun 24th, 2012 7 Pages
Unit 1: Business Environment

Assignment 3

Apple is the company that I am going to be talking about in this assignment; I will be talking about how different economic environments affect two countries Apple operates in (China, USA) and what countries they are manufactured and assembled in. They’re stores are usually located in the central main shopping centre of a city especially their stores in the UK. The company Apple is a private limited company and the company is open to the public to buy shares in the organisation. The company is based in the secondary sector of business. Here is a table stating some of the economic factors that may affect Apple. China United Kingdom
GDP China GDP is worth 5879 billion dollars or 9.48% of
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The total number of unemployed people fell by 88,000 over the quarter to reach 2.43 million.
Currency 0.101512697 in pounds 0.642880103 in pounds

Economic factors affect every organization in the world of business on a regular basis. Economic factors can affect almost all of the elements of business; sales, annual profit, employment and cost to name a few. Economic factors may affect a business in a positive or negative way depending on how the economics have changed in the country where a business operates.

Changing which country a business will manufacture, assemble or purchases materials to produce their products may benefit the company depending on the GDP and allowance rates. E.g. If Apple buys the materials for its products in China then the GDP in China rises then it may be cheaper for Apple to buy its materials from a different country.

U.S.A economic factors that affect Apple

Operations and performance of Apple inc depend a lot on economic conditions across the world. Uncertainty about global economic conditions poses a risk as consumers and businesses postpone spending in response to tighter credit, unemployment, negative financial news and/or declines in income or asset values, which could have a material negative effect on demand for the Company’s products and services. Demand also could differ from the Company’s objectives because Apple may raises