The Impact Of Globalization On Apple

Apple

Apple is an American multinational technology company headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The two Steve’s - Jobs and Wozniak - may have been Apple's most visible founders, but were it not for their friend Ronald Wayne there might be no iPhone, iPad or iMac today. Jobs convinced him to take 10% of the company stock and act as an arbiter should he and Woz come to blows, but Wayne backed out 12 days later, selling for just $500 a holding that would have been worth $72bn 40 years later. (Rawlinson, 2017)

Apple has a huge net worth of around US$900 Billion. This is much more than some countries around the world. This means that Apple can afford

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

The most common example of globalization might be Ebay or Amazon. Nowadays flows of goods and services are not only cheap and fast, but reliable and secure. You can order anything you wish from every part of the world. I see globalization as a connecting people without any limitations or boundaries in the way of doing business. (Globalization101, 2018)

Factors of globalization

Globalization is driven by four factors:

1. Cost

2.

Companies will want low costs; this means that they will most likely operate their factories in a country that has relaxed laws or tariffs/taxes/etc. (Czinkota, 2011)

Manufacturing in USA costs very much due to the laws and taxes imposed on them, which is why Apple chooses China, as Chinese costs are much lower than their American counterparts. While they manufacture their products in China, it is designed in California, USA, and the resources come from different parts of the world. (Czinkota, 2011)

Market

All countries have a very different lifestyle. Having a global strategy does not mean that a company should serve the entire globe. Critical choices include deciding where to spend resources and where to hang back. The usual approach is to start by picking regions and then countries within them. Market data might be more readily available in situations where the firm is grouping markets according to existing structures and frameworks.

If a global company such as Apple sells their product for a high price in a low-income country, they are most likely going to expect little to no sales at all due to the country’s usual price ranges for that specific product/service. (Czinkota,