Tuesday, October 8, 2019
The Dynamic Geography of Global Work Essay Example | Topics and Well Written Essays - 500 words - 1
The Dynamic Geography of Global Work - Essay Example Cost of production encompasses other factors such as cost of labor, raw materials, and overhead costs. The second broad category of factors is the market. Initially, Apple manufactured most of its products in America. Today, the company manufactures most of its products overseas. Steve Jobs clarified to President Obama that jobs were not going back to US. The case clearly reveals the changing geography of business. It justifies that claim that America has changed from provision of goods to provision of services (Thier, 2012). Whereas about 10% of Americans work in manufacturing in industries, the rest work in service industries such as Walmart. Successful global operations of Apple have made be among the best companies in the world that people admire. Apple maintained that the shift to overseas the only option. Business organizations would opt to set their manufacturing firms in areas that minimize costs of production. China and India are the latest targets for American industries. Costs and accessibility of raw materials play critical roles in determining the final cost of a product (Garside, 2013). As a result, Apple could be operating in China because of availability of raw materials at a considerably low cost. In addition, cost of labor also matters. China could be having ready man power for the Apple industry. Steve Jobs explained that cheap labor could not be the only reason for the shift of Apple to China. He cited economies of scale in manufacturing facilities and human resources as the some of the reasons for the decision. It takes many months to mobilize contractual engineers and takes a short time to do that in China (Thier, 2012). Apples Executives also highlighted that it takes a lot of tine to construct manufacturing units in America. An individual only needs 15 days to construct a new production line to accommodate a new design. Despite the fact that iphones are made
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