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Apple Inc.s Globalization Strategy and International Trade
A company that advocates for globalization and operates in the United States is Apple, whose primary business activity is designing, manufacturing, and selling laptops, smartphones, and developing software for these products. This business promotes globalization by leveraging the low cost of manufacturing in China and selling its products globally through its e-commerce website and physically distributing the electronics. This paper will discuss Apples globalization strategy, global actions advocated for by this company, and how it facilitates international trade.
Based on Apples strategy and location of its manufacturing facilities and its products, the company advocates for a standardization strategy, where the world is treated as a single market, and the products are developed without making changes to suit the needs of certain nations. For example, Apple has been investing in manufacturing facilities in China, while the process of designing and engineering its products happens in the United States (Bremmer, 2020; Lak, 2017). This allows Apple to achieve cost reduction since it is much cheaper to produce phones in China, and better efficiency because Apple purchases many electronics components from manufacturers in China, hence there is no need to ship them to the United States.
The products that Apple trades are its trademark iPhones and laptops, for example, Macbook. Additionally, it develops software installed on its devices, such as iOS, and provides some services for consumers, such as iTunes, where one can purchase music or other entertainment products. Apple facilitates international trade both through e-commerce and by physically transporting electronics and selling it in different countries. For the latter, the company partners with authorized resellers or opens official Apple stores. Overall, Apple advocates for globalization and uses the process to reduce costs and target the global consumer.
References
Bremmer, I. (2020). A tale of two companies: Apple and Amazon in the evolving globalization.
Lak, R. (2017). Globalization with Apple.
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