Apple Inc. Outsourcing and Comparative Advantage Student’s Name Institution Affiliation The Reasons behind Apple Inc. Outsourcing Supplies outside the U.S Apple Inc is a Multinational Corporation operating in the technology industry and trades in electronics software and online services. The company has been among the most successful companies in the technology industry with its prowess in innovations and development of products and services that provide an excellent user experience. Although the company is headquartered in the U.S it obtains its trading products from external sources mostly from the Asian continent. There are various drivers to sourcing supplies from overseas markets that revolve around cost reduction and cost leadership strategy (Alexandrova n.d.). The primary objective of running a business is generating profit. Therefore an organization implements and executes strategies aimed at maximizing revenue and minimizing cost. Apple Inc. success is attributable to its cost leadership strategy and innovativeness. The company factors. The strategy is aimed at creating a sustainable relationship with the suppliers and creating a positive public image of the company ("Apple Supplier Code of Conduct" 2018). References Alexandrova M. International Outsourcing: Incentives Benefits And Risks For The Companies In See Countries. Asecu.gr. Retrieved 22 February 2018 from http://www.asecu.gr/files/RomaniaProceedings/02.pdf Apple Supplier Code of Conduct. (2018). Images.apple.com. Retrieved 19 February 2018 from https://images.apple.com/supplier-responsibility/pdf/Apple-Supplier-Code-of-Conduct January.pdf Independent Investigation of Apple Supplier Foxconn Report Highlights. (2012). Fairlabor.org. Retrieved 19 February 2018 from http://www.fairlabor.org/sites/default/files/documents/reports/foxconn_investigation_re ort.pdf Johnson K. Li Y. Phan H. Singer J. & Trinh H. (2012). The Innovative Success that is Apple Inc.. Mds.marshall.edu. Retrieved 19 February 2018 from http://mds.marshall.edu/cgi/viewcontent.cgi?article=1420&context=etd Kowalski P. (2011) “Comparative Advantage and Trade Performance: Policy Implications” OECD Trade Policy Papers No. 121 OECD Publishing. http://dx.doi.org/10.1787/5kg3vwb8g0hl-en Majeed S. (2011). The Impact of Competitive Advantage on Organizational Performance. Pdfs.semanticscholar.org. Retrieved 19 February 2018 from https://pdfs.semanticscholar.org/40ce/1b47e6c16fe01de655e03eb1a1b5df3fbbf2.pdf Ullum J. (2006). Effective Manufacturing Outsourcing In China. Instituteforsupplymanagement.org. Retrieved 22 February 2018 from https://www.instituteforsupplymanagement.org/files/Pubs/Proceedings/EJUllum.pdf [...]
Explain why most Apple products are made outside the firm's home country, the United States. What is comparative advantage? How does Apple benefit from comparative advantage? Describe the problems that Apple experienced with its supplier Foxconn. What steps did Apple take to resolve the problems?