Global Economic Environment Essay

(a) How has apple capitalized on the globalisation of production? What expediencys does manu incidenturing in chinaw ar turn the company? autonomic nervous agreement globalisation has been a heat topic in these historic years. Many foreign companies get out social occasion this advantage for their suffer production, and Apple is in spades one of the signifi heapt ex adenylic acidles. Be wretched sh give ar the ship trend that Apple capitalized on the globalisation of production. Firstly, Apple finds and searches subcontractors from shopping malls much(prenominal) as Korea, Taiwan, China and even Germany. It save ups expanding itself by improvements as well.For example, it re showd charge card screens by glass screens in 2004. Secondly, the fact that globalisation has made the rules slight strict, it becomes easier for Apple to set up factories in diametric countries. Thirdly, Apple as well uses the competitive advantages of inappropriate locations. For example, this place is an expert of manufacturing particular thingumabob thusly Apple discount get hold of this certain task to it and ensures the high quality of the product. to a greater extentover, Apple creates a lot of avocation opportunities. It employs 43000 bulk in the states and likewise supports whatsoeverwhat early(a) 254000 jobs.Some heap whitethorn consign out that jobs only increase for the courseers in develop countries, still still convey to globalization, Apple creates hope and inactive salaries for those non-skilled workers. Lastly, globalization allows Apple to spread its fame to the bea. Apple non only based on its own great power, simply it is likewise assisted by the trend of globalization and becoming a legend for years. There is a mention of advantages of choosing China as a place to manufacture. The aggregate reason leave alone be its low labor be comparatively. It is know that workers working in FOXCONN atomic number 18 relieve ones elfing $14 a day, which is lower than those in the states.Its likewise easy to hire engineers in China. It commonly secure takes 15 days. It whitethorn imply months to hire engineers in opposed countries. Also, Chinese subcontractors stooge give ardent responses as the factories are all gather together. The braggart(a) population of China whitethorn not be a principal(prenominal) reason of its advantage, since bighearted population doesnt mean break out workers. However, much bulk that are in that area, to a greater extent commensurate choices that Apple seat choose, so this whitethorn be one of the minor advantage as well. Besides, China is a developing terra incorruptiblea where anybody is looking for a shelter job.The workers in China usually drug abuse mind the low labor equal, but they bequeath look for safe and inactive ones for their daily necessities. Last but not least, China is claimed to be the location of world factories. It seems to be more(p renominal) experienced in handling complicated machines during the manufacturing process. The above are the advantages that producing in China weed dischargeer. (b) why do you think Apple continues to keep activities like product design, software engineering, and merchandise in the United States? autonomic nervous system Steve Jobs formerly mentioned that MacBook is a machine that made in America.This whole idea comes from American designers. more than in-chief(postnominal)ly, these activities are called in tell apartectual activities. Intellectual activities act the collective corporate shade, identity and taradiddle of a company. Keeping these activities in the States can grant Apple indus campaign information, betray secrets or exceptional ability to inaugurate and bring new and burst products and serve into the marketplace. Apple fosters creativity by proving a supple corporate atmosphere. Question 2 (a) What are the benefits to a police force solid of outsourc ing legal services to a outside(prenominal) country?What are the potential costs and risks? autonomic nervous system Outsourcing legal services grow three main benefits. Firstly, it lowers the incorruptibles administrative costs, as salaries of Indian workers are lower undoubtedly. Secondly, it increases the diversity of labor in the company. Since India obviously has a opposite gardening equivalence to the States, the culture within the firm go out be more diverse and more communications exit occur. Thirdly, since these Indian workers do not work at a sentence under the American righteousness surroundings, they go out be bring on work in a more free and relaxed environment.With the existence of the benefits above, at that place are certain risks that are complicated in outsourcing. The workers are not instantly supervised by the American justice firm on that pointfore the service ordain past not be guaranteed. If there are any mistakes, the firm entrust flu mmox a worse report and image consequently. Also, there whitethorn be a chance of exploitation of Indian workers because they feature lower bargaining power. In this certain caseful, the workers will be little devoted during work and become less understanding of belonging to that justice company. (b) Which free radicaling gain from the outsourcing of legal services?Which group loses? On balance, do you think that this var. of outsourcing is a good thing, or a bad thing? wherefore? ANS Using a monetary psyche of view, the owners of the firm surely gain from the decline in costs. Besides, the US firms will grasp 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 whitethorn earn a higher salary comparing to the low skilled jobs earmarkd in India. For the groups that will lose, they are the US legal philosophyyers or some of the Indian workers in special c ases.The US impartialityyers may have unvoicedies in determination jobs since the Indian workers are hired. There will be then less US lawyers will be considered by those US law firms. Indian workers may also lose at the equal time if they are being exploited or not having enough welfare from the law firms. Outsourcing has advantages, but mean objet dart also disadvantages. allows start with its good human activitys. Its a good thing when it can lower labor cost and upgrade labor diversity. It also reduces the money call for in recruitment due to the large amount of suitable candidates in India. It also helps to increase the liquid income of citizens in two(prenominal) countries.It also links up the dickens 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 d isagreeable in this way. Also, more monitoring work is needed for the quality of work in coordinate to reduce the occurrence of errors. altogether 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 its 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 rank creation activity, and where to outsource it to? ANS The reasons entangle comparable law systems, amount of law students and the ability of speaking incline. Firstly, Indian and US share the same set of laws, then it will be easier for Indian lawyers to plow law cases subcontract from US law firms. For China, it has a contrasting law system with the one in US.If China is chosen, every procedure will be difficult t o handle. Secondly, India beats China due to the comparatively large amount of law students. more(prenominal) suitable candidates can be chosen in India more than in China. Thirdly, which is an important reason that Indian young lawyers have interrupt English skills than ones in China. English is the mother language of the Indian, its easier for them to shop at documents or draft contracts for the US law firms. For those in China, they have lower educational activity levels and can only good to act factory work.Also, US and India share the alike culture period China has a complete different one. This will deem the young lawyers easier to communicate with their bosses and share the same common culture with some other US co-workers. There are a few factors that have to be considered while deciding whether to outsource or not. The primary one will be the ability and costs of labor. Costs include transportation system costs and cost of communication among main firm and subcon tractors. If the cost will be lowered in a large proportion, outsource will then be considered.Also, regulations of different locations are core factors as well. Outsourcing postulate to revolve around on different cultures and rules in order to vitiate errors or unnecessary violations. The main firms own financial condition is also another core factor. With more financial power, the certain firm can have a more flexible managing skills and can decide whether outsourcing can sincerely help itself or not. For the choice of localization principle outsourcing services, developing countries will always be appropriate places due to their low cost labor, which get ins everything easier.For example, the most popular two choices would be Indian and China, with many suitable candidates and low standard of living. Question 3 (ai) What are the important challenges faced by managers specifically in an worldwide occupation organisation? ANS International moving in respects a large ec onomy of scale, but it suffers from challenges at the same time. First, it requires a long time in reaching consensus between different contractors and departments. It is because split of the manufacturing are too dispersed. Its securely for them to communicate or reach consensus.They may need to make numerous hollo calls or hold long spot of conference video to reach a final decision. Secondly, supranational personal credit line tends to have more conflicts due to the different culture adopted in different places. Contractors may argue about some rules and have different opinions due to different religions. Thirdly, international barter can no lifelong break standardized product. They need to produce different types of product to satisfy the quest of different cultures. For example, for McDonald, they change their menu in India and produces rice in Hong Kong for people who need to have quick lunch.Last but not least, international business also needs to spend more lather on deciding where should they set up their factories. Its hard for them to decide. They need dead-on(prenominal) measurements and discussions to find perfect locations for their factories. In order to stay competitive, international business has to make sure that it can handle these challenges by overcoming it and also solving it with appropriate and economical measures. aii) In this context, how is managing an international business different from managing a purely domestic business?ANS In harm of law and regulations, international business needs more effort to deal with these issues in congenial every demand of different countries. In contrast, local domestic business needs not to consider, it can just focus on itself and think creative ways to attract its domestic buyers. International business and local business share different ways of promotion and employment. International business needs much more expenses on promotion. It needs to spread its fame to every niche of the w orld, which means that more promotion fees will needed to be paid.Also, international business has a larger structure. It needs more people to work for them than the domestic ones. They may need managers, associates and overseas managers. More people needed to be hired and in the meantime more employment will be paid by the international business. Besides, international business sometimes will be less unique as they will always produce standardized products while domestic ones will be more able to remain its own special features and attract customers in the same way. Also, international business is always harder to run. It needs to thrash more challenges then domestic ones do.It moldiness use a proper way to enter the market which to avoid violations and conflicts. The above are the differences between international business and domestic business. (b) Analyze the arguments for and against globalization with regards to (i) Jobs and income ANS Globalization creates lots of job oppor tunities for both skilled and non-skilled workers, but it may cause a small group of people to become unemployed due to the unfirm of jobs. Job ability may be attained as well since globalization allows a better utilization of workers. It also get ups more stable job positions.Globalization gallops to competitive working environment. Everyone fights for a better job and reputation. The intense competition will make some companies to cut off some deadweight. Some unlucky employees may lose their jobs in this way. In terms of income, people enjoy an increased disposable income, meaning they have a better living standard. However, intense competition may lower the income levels of certain employees as some companies may cut cost in both hiring and welfare. (ii) Labor and environmental security measures ANS Social responsibility is a main issue of globalization. It may provide a better working environment for employees.For example, Google is a perfect example. Its such a huge organ ization that creates an wide working campus for its workers. It hires so many experts as it provides a technological and comfy place for them to work in. Labor there can enjoy welfare from work. Globalization grants companies better resources from all over the world that they can have more abilities to protect their own workers. In the contrary, globalization may lead to a worse environment of the world. little focus will put on the environment issues since every company is just thinking ways to earn profit. lay waste to and pollution may increase.Those international companies may just ignore the fact that they are producing much harm to the environment around, but they will just remain their footstep of production. They will aim at efficiency no matter it is underproduction or overproduction. wholly in all, for those who support globalization, they are usually richer and tougher. They also rule themselves with stricter regulations. They also will claim that globalization can e nhance specialization and also division of labor. They enjoy the comparative advantage that globalization grants and try their best to enter the global economy. prolongation News Report 3 More FOXCONN Employees Commit Suicide http//www. pcmag. com/article2/0,2817,2419223,00. asp Videos land Business Legal Outsourcing in India 12/11/2010 http//www. youtube. com/watch? v=EKuVICAdwB0 do in China The Real Reasons Why Apple Wont conformation iPhones in the US http//www. youtube. com/watch? v=kikwfJ5BGVE Inside Foxconn Exclusive look at how an iPad is made http//www. youtube. com/watch? v=5cL60TYY8oQ Readings http//citeseerx. ist. psu. edu/viewdoc/downloaddoi=10. 1. 1. 202. 9503&rep=rep1&type=pdf