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The Dynamic Geography of Global Work - Essay Example

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It puts environmental factors of production into account while maximizing operations. It has been realized that there is a changing geography in methods of doing business. Business…
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The Dynamic Geography of Global Work
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The Dynamic Geography of Global Work Geographical consideration of doing business is an important aspect in globalization. It puts environmental factors of production into account while maximizing operations. It has been realized that there is a changing geography in methods of doing business. Business organizations tend to locate themselves in places that optimize their productivity. For instance, Apple has geographical policies that dictate its operations around the world (Garside, 2013). There are a number of factors that the company considers when setting up its structure. Cost of production is a notable factor that it needs to minimize in order to maximize profit. 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 outside America, the product is a true American spirit.
The latest trend in shifting geographical territories in business have resulted to changes in certain economic parameters. The wage gap between Northern Mexico and Eastern China was 24% in 2013. The figure is currently 10%. The phenomenon could be due to the fact that companies such as Apple are shifting their production to China, India and other fast developing countries (Garside, 2013). It is evident that China would be the focus for many business organizations in 2025. Otherwise, the US, remains the main market for most industries.
References
Garside, J. (2013, November 5) Apple creates 2,000 jobs shifting production back to US. The Guardian. Retrieved from http://www.theguardian.com/technology/2013/nov/05/apple-creates-us-jobs-renewable-energy (????????)
Thier, D. (2012, December 7) Apples US Manufacturing: Meaningful Shift or PR Move?. Forbes. Retrieved from http://www.forbes.com/sites/davidthier/2012/12/07/apples-us-manufacturing-meaningful-shift-or-pr-move/ (????????) Read More
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