case study Essay

1069 Words Jan 27th, 2014 5 Pages
Case study: Apple iPhones - Not "Made in America"
1. What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations?
The globalization of human capital refers to the fact that employees are now spread out across the world by their employers. This including, the companies, employed, unemployed, stockholders, consumers, contractors, supply chain, firms and economies. Companies branch out because labor costs are cheaper and productivity is faster.
It is inevitable if firms increase their global operations because every country has something different to offer, something new, and without the current innovation being promoted to the market, the company will start to lose its edge on
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Clothes are an example, all things being equal, a t-shirt made overseas cost relatively the same as a t-shirt made in the US. Why should an IPhone be any different? I feel that although the profit from each phone would be decreased, they would sell the same amount of phones if not more.
6. How much extra are you prepared to pay for an IPhone assembled in China but under better labor conditions or pay? What kind of trade-off would you make?
This also deals with the question previously asked. I have not changed my stance on IPhone; however, if they were to charge more to have it assembled in China, why couldn’t or wouldn’t they just produce it in America. It would not make sense if they had to increase cost to better working conditions in another country. I believe it would be cheaper to bring some of the laborers here to the US and open a plant here.
7. To what extent do you think the negative media coverage has affected Apple’s recent decision to ask the FLA to do an assessment and the subsequent decision by Foxconn to raise some salaries? What do you think will happen now?
I believe that the negative media coverage has inspired Apple to be more cautious about their corporate image. Subsequently, it affected their way of thinking so that they had to ask for an FLA assessment. They could ill-afford to continue to be seen in a negative light and heartless. They already stated that

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