Globalization is a defining word of our age and the way in which we live. It affects people, companies, their workforce and consumers. Globalization affects all aspects, not just of the corporate world, but transactional and cultural relationships generally. And as a consequence it affects how we live and how we interact, no matter where we live. This is background wherefore it has a great impact on our life and how we interact, no matter where we live. The study of transaction takes place in form of trade across national borders for the purpose of satisfying the needs of individuals and organizations.
According to Milton Friedman, “it’s now possible to produce a product anywhere by a business located anywhere, using resources from anywhere, to be sold anywhere”.
(Roosa, 2008, p.182)
All Apple products, as well as the Ipod, are developed, designed and market in house by Apple’s headquarter located in Cupertino USA, but simultaneously outsourced the remaining four hundred plus intermediate components to both domestic and international subcontractors.
The story of internationalization starts with the microchip that makes the “music player go”. It is subcontracted by another Silicon Valley company called Portalplayer which outsourced the microchip’s production to Taiwan. Even the operating Software is written by engineers in India which are cheaper than their American Colleagues. Together with the Ipods fabulous operating system which makes the product easy to use, the microchip is send to a warehouse located in Hong Kong until the component is delivered to Apple’s outsourced production plant (Linden et al, 2007). A few of the Ipod components are high cost. The hard drive & flashmemory (function as temporary storage) are manufactured by Toshiba in Japan and Samsung in Korea. The majority of components are low cost. For instance the metal parts are made by Foxconn in Taiwan and the plastic components are produced in Singapore which developed from a low cost manufacturing platform to a higher-value added manufacturing centre (Brown, 1998, p.198). All components are assembled in the outsourced production plant in Shanghai. The transportation company Fed Ex delivers the finished Ipod to the worldwide 246 Apple stores and other electronic stores (Kahney, 2008, p.86).
Table of Contents
1. Globalization and Apple’s respond to the international Game
2. Conclusion
Objectives and Topics
This paper examines the dynamics of globalization and the internationalization strategies of multinational corporations, using Apple as a primary case study. It analyzes how global trade theories, such as comparative advantage and mercantilism, influence corporate decision-making regarding supply chain management, outsourcing, and foreign direct investment (FDI), while also evaluating the role of government intervention and trade barriers in shaping global market operations.
- Analysis of Apple’s global supply chain and internationalization patterns.
- Evaluation of classical international trade theories (Absolute and Comparative Advantage).
- Examination of the impacts of trade policies, including tariffs and non-tariff barriers.
- Strategic decision-making factors for Foreign Direct Investment (FDI).
Excerpt from the Book
Globalization and Apple’s respond to the international Game
Globalization is a defining word of our age and the way in which we live. It affects people, companies, their workforce and consumers. Globalization affects all aspects, not just of the corporate world, but transactional and cultural relationships generally. And as a consequence it affects how we live and how we interact, no matter where we live. This is background wherefore it has a great impact on our life and how we interact, no matter where we live. The study of transaction takes place in form of trade across national borders for the purpose of satisfying the needs of individuals and organizations.
According to Milton Friedman, “it’s now possible to produce a product anywhere by a business located anywhere, using resources from anywhere, to be sold anywhere”. (Roosa, 2008, p.182)
During the decade of the early 20th century, large multinational corporations expanded their Global reach, while simultaneously focusing on a narrow range of core businesses, in which they sought to control if not necessary to own, as much as of the value chain as possible (Kristinsen & Zeitlin, 2005,p.1).
Summary of Chapters
Globalization and Apple’s respond to the international Game: This chapter introduces the theoretical foundations of globalization and examines how Apple leverages internationalization strategies, outsourcing, and FDI to maintain its position as a global player.
Conclusion: This section synthesizes the findings regarding the inevitability of globalization, the necessity of strategic international trade instruments, and the impact of government intervention on competitive market outcomes.
Keywords
Globalization, Internationalization, Apple, Supply Chain, Outsourcing, Foreign Direct Investment, Trade Barriers, Tariffs, Mercantilism, Comparative Advantage, Multinational Corporation, Economic Strategy, Protectionism, World Trade Organisation, Global Strategy.
Frequently Asked Questions
What is the core focus of this research paper?
The paper fundamentally investigates the process of globalization and its impact on corporate strategy, specifically analyzing how a multinational entity like Apple manages its international supply chain and market entry.
What are the central thematic areas covered in the document?
The core themes include international trade theories, the mechanics of outsourcing, the strategic use of Foreign Direct Investment (FDI), and the regulatory challenges posed by trade barriers like tariffs.
What is the primary research goal?
The goal is to determine how global business dynamics and internationalization patterns influence the competitive position of a multinational enterprise operating across national borders.
Which scientific methods or models are applied?
The author applies the "Patterns of Internationalization" model and analyzes various classical trade theories (e.g., Absolute and Comparative Advantage) to evaluate corporate decision-making processes.
What topics are discussed in the main body?
The main body covers supply chain configuration, the evaluation of different global strategies (Multidomestic vs. Global), the role of government trade policies, and an assessment of FDI factors in Germany versus Japan.
Which keywords characterize this work?
Key terms include Globalization, Apple, Outsourcing, FDI, Comparative Advantage, Trade Barriers, and Global Strategy.
How does Apple benefit from outsourcing in the context of comparative advantage?
Apple utilizes the comparative advantages of different countries—such as low-cost manufacturing in Asia and specialized software development in India—to increase overall operational efficiency and reduce costs.
How does the author evaluate the decision between investing in Germany versus Japan?
The author uses a risk/opportunity matrix based on factors like GDP growth, business environment, government policies, and ease of doing business to advise Apple on the most suitable location for a new retail store.
- Quote paper
- Sascha Schneiders (Author), 2010, Globalization and Apple's respond to the international Game, Munich, GRIN Verlag, https://www.grin.com/document/156045
