Apple Inc: Outsourcing Of Manufacturing To China (Research Paper Sample)
Individual Research Paper and Reflection. Grades will be received for the group work carried out throughout the term on the research project. You must also complete an individual component for the research project in order to pass the course. The paper, submitted in week 13, should include:
o A short literature review on your topic based on the research your group conducted (300 words).
o A critical analysis of the topic you selected based on your group research (500 words).
o A short reflection piece on the experience of doing research in a group (200 words).
This is a summary of the previous presentation, I will attach the previous material, I am talking about the third slide.
A short reflection is just like saying, we're just doing our part.
We made a summary of our presentation and then made an infographic to list our data.
FINAL INDIVIDUAL PAPER
According to (Duhigg & Bradsher, 2012), ‘the nation has stopped training enough people in the mid-level skills that factories need.' The labor pool in the United States is relatively more skilled than in most east Pacific countries. Thus, the cost of labor in the US is higher relative to the Chinese labor pool. Compelling Apple to assemble its products on American soil will significantly increase their productions costs which are transferred to the consumers through setting their prices higher. Chinese workers are cheaper and have the skills necessary to deliver quality products to the American tech giant, Apple. Their salary is unsustainable in the United States. In economics, a company has to minimize its cost of production to maximize its profit. Apple's decision to outsource manufacturing labor in Asian Pacific countries is in line with this principle.
According to (Kraemer, Linden, & Dedrick, 2011), ‘bringing high-volume electronics assembly back to the U.S. is not the path to “good jobs” or economic growth.' Pegging hope to solve unemployment issues in the US by compelling Apple to assemble its products in the United States is impractical. The number of jobs it can bring are also limited and to replicate Chinese working conditions in the United States will attract numerous labor-related lawsuits according to labor laws in the US. Simply moving the manufacturing jobs back to the United States does not solve the unemployment problem. The company will have to grapple with higher wages and costlier supply chain to get the raw materials for the assembly of its devices. Apple will also lose the symbiotic relationship manufacturing companies have in China and the shorter supply chain of materials for assembly. Additionally, most Americans are not even interested in manufacturing jobs since their expertise allows them to work on another level where they can earn more. To move the manufacturing jobs back to the United States either the American workers agree to the working terms of the Chinese labor market or the company to agree to possibly make losses and employ workers on American labor terms. All these scenarios are impractical, and therefore Apple will have to continue outsourcing labor from China to assemble its devices.
Apple Inc. Has been outsourcing its manufacturing to China and the company has claimed that the price of their products would be more expensive if they based their manufacturing in America. To ensure competitive prices in the market, the company has to ensure per unit cost of one product is as low as possible. The market forces determine the ideal location and production cost of each unit and Apple settled for China. In its early years, the company assembled its products in America but slowly turned East due to the availability of cheap semi-skilled labor.
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