GLOBAL ECON Essay

2417 WordsNov 10, 201310 Pages
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…show more content…
Thirdly, since these Indian workers do not work directly under the American law environment, they will then work in a more free and relaxed environment. With the existence of the benefits above, there are certain risks that are involved in outsourcing. The workers are not directly supervised by the American law firm therefore the service will then not be guaranteed. If there are any mistakes, the firm will have a worse reputation and image consequently. Also, there may be a chance of exploitation of Indian workers because they have lower bargaining power. In this certain case, the workers will be less devoted during work and have less sense of belonging to that law company. (b) Which group gain from the outsourcing of legal services? Which group loses? On balance, do you think that this kind of outsourcing is a good thing, or a bad thing? Why? ANS: Using a monetary point of view, the owners of the firm surely gain from the reduction in costs. Besides, the US firms will earn by enlarging its profits. Most significantly, the Indian workers are gaining from this outsourcing activity. They can have a stable profession in the States and they may earn a higher salary comparing to the low skilled jobs provided in India. For the groups that will lose, they are the US lawyers or some of the Indian workers in special cases. The US lawyers may have difficulties in finding jobs since the Indian workers are hired. There will be then less US lawyers will be
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