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1. What is meant by the globalization of human capital?

Is this inevitable as firms


increase their global operations?

Human capital  knowledge, habits, social and personality attribute embodied in the
ability to perform labor so as to produce economic value. So…Globalization of human
capital means offshoring or moving the jobs performance outside the country of origin,
and usually it is done by the firm in order to save cost.
I believe it is inevitable as firms increase their global operations because by doing
so (outsourcing their manufacturing and assembly jobs ) these companies are
increasing profits and lowering costs. Looking at it from a money making perspective it
is a wise decision so more and more companies that are increasing global operations will
be persuaded to use cheaper labor overseas

2. How does this case illustrate the threats and opportunities facing global companies
in developing their strategies?

The threat facing Apple is the image of their company that most Americans are going to
have after receiving this information. When the President of the United States asks the
question of why Apple could not bring back all the jobs and Apples’ responds, it becomes
apparent that apple is a company that does not care about the well being of their home
country, rather than strictly their profits.
Furthermore, there is a Backlash concerning working conditions; possible breach of US
laws concerning the use of toxic chemicals

Opportunities that arose for Apple were finding ways to cut costs and increase profits
by outsourcing jobs. They found cheaper parts and labor. It’s cheaper to have people
engineer, build, and assemble their products overseas

3. Comment on the Apple executive’s assertion that the company’s only obligation is
making the best product possible. “We don’t have an obligation to solve America’s
problems.”

To a large degree this is correct. Apple’s primary obligations are to its customers
and shareholders. By producing excellent products at a reasonable price Apple is doing
well to both groups. Apple is not obligated to sacrifice either group to the vision of
increasing America’s employment numbers. So from apple’s point of view it is
responsible for its customers and shareholders by making as much profits as possible;
as a result, it produces best products at a considerable price.

4. Who are the stakeholders in this situation and what, if any, obligations do they have?

Apple’s stakeholders are their clients and shareholders. Foxconn’s stakeholders are their
workers, their owners and their clients – such as Apple, Dell etc. Foxconn’s obligations
are approximately the same as Apple’s: to satisfy their clients, make profits for their
owners but also to do well by their employees.

5. How much extra are you prepared to pay for an iPhone if assembled in the United
States?

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?

Both questions could only be answered on an individual basis, but it is important to


remember that price is a factor in the purchase decision of a smart phone and therefore
is a major component of competition. Even if you, as the reader/student, were willing
to pay more how well would Apple be able to compete? Furthermore, I think that apple
will lose recognition if assembled in china since the country has a reputation of “low
quality” products. In my opinion I value a lot quality and if it is not affected I would pay
a bit more.

7. To what extent do you think the negative media coverage has affected Apple’s
recent decision to ask the FLA to do an independent assessment and the subsequent
decision by Foxconn to raise some salaries? What do you think will happen now?

It could be surmised that the negative reaction had a major impact on Apple’s
decision. It is well understood recently by many major corporations that sustainable
business practices, which include fair treatment of employees, are valued by customers
and shareholders. It may be assumed that Apple will continue to insist on fair treatment
of employees by their subcontractors and validate that by third parties.

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