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Apple inc., like many other electronic companies, is no stranger when it comes to offshoring jobs such as the manufacturing process of their products like the iPhone to foreign factories. In fact, the components for the iPhone are manufactured around the globe (“semiconductors from Germany and Taiwan, memory from Korea and Japan, display panels and circuitry from Korea and Taiwan, chip sets from Europe, and rare metals from Africa and Asia”) and final assembly takes place in China by Foxconn, Apple’s major subcontractor. Why does Apple outsource its production major assembly process to China? Besides the lower cost in labor, Apple also points out the ability of its Chinese subcontractors to respond quickly to change in scale of production, as well as the ability in hiring engineers and other workers in a short notice quickly in China than elsewhere. Source: Gu Huini, “Human Costs Are Built into iPad in China,” The New York Times, January 26, 2012; C. Duhigg and K. Bradsher, “How U.S. Lost Out on iPhone Work,” The New York Times, January 22, 2012. Question: What are the benefits of offshoring their production process to foreign countries?
Apple inc., like many other electronic companies, is no stranger when it comes to offshoring jobs such as the manufacturing process of their products like the iPhone to foreign factories. In fact, the components for the iPhone are manufactured around the globe (“semiconductors from Germany and Taiwan, memory from Korea and Japan, display panels and circuitry from Korea and Taiwan, chip sets from Europe, and rare metals from Africa and Asia”) and final assembly takes place in China by Foxconn, Apple’s major subcontractor. Why does Apple outsource its production major assembly process to China? Besides the lower cost in labor, Apple also points out the ability of its Chinese subcontractors to respond quickly to change in scale of production, as well as the ability in hiring engineers and other workers in a short notice quickly in China than elsewhere. Source: Gu Huini, “Human Costs Are Built into iPad in China,” The New York Times, January 26, 2012; C. Duhigg and K. Bradsher, “How U.S. Lost Out on iPhone Work,” The New York Times, January 22, 2012. Question: What are the benefits of offshoring their production process to foreign countries?
A、Comparative advantage and specialization.
B、Lower labor costs in China or other developing countries than in the United States.
C、High speed and efficiency of Chinese factories and workers.
