Book: Global Business Today (9th Edition), by Charles W.L. Hilland G. Tomas M. Hult.
Case Study: Who Makes the Apple iPhone?
2. In addition to Apple, who else benefits from Apple’s decisionto outsource assembly to China? Who are the potential losers?
Expert Answer
Ans: In China, factories are clustered together. Many of thefactories providing iPhonecomponents for final assembly are locatedclose to Foxconn’s assembly plant and benefitfrom Apple’smanufacturing decisions. The employers and employees of thehiredfactories in China benefit from Apple’s decision to outsource,because now more jobs areavailable for them. The potential losershere are people of United States, because they arelosing their jobsto Chinese people,
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