GLOBAL ECON

2428 words 10 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
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Outsourcing has advantages, but meanwhile also disadvantages. Let’s start with its good deeds. It’s a good thing when it can lower labor cost and enhance labor diversity. It also reduces the money needed in recruitment due to the large amount of suitable candidates in India. It also helps to increase the disposable income of citizens in both countries. It also links up the two countries that are involved, bonding them with a sense of partnership. However, outsourcing has certain potential harms. Workers face a more intense competition since there are more choices of workers due to outsourcing. Therefore, the Indian workers will feel more stressful in this way. Also, more monitoring work is needed for the quality of work in order to reduce the occurrence of errors.

All in all, with balanced managing skills, outsourcing will then be a good deed to grant benefits to both countries involved, which will be India and the States if it’s in this case in this question.

(c) Why were the services in this case outsourced to India, as opposed to another country such as China? What does this tell you about the kinds of factors that are important when a firm is considering whether to outsource a value creation activity, and where to outsource it to?
ANS: The reasons include same law systems, amount of law students and the ability of speaking English. Firstly, Indian and US share the same set of laws, then it will be easier for

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