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Apple Manufacturing in China

In: Business and Management

Submitted By sowhatever1023
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Apple Manufacturing in China I became extremely interested in the topic of the United States not manufacturing in its country after everyone in class said which country their t-shirts and sweaters were made in. Not a single student said they were wearing something that was made in the United States. This should not be a surprise to me since I work in retail and everything I help to sell is from out of this country, but it caught my attention. Why doesn’t America manufacture in its country? After surfing the web for a while I came across a couple articles that helped me to understand why some companies, like Apple, do not manufacture in the states. Several companies decide to open facilities in foreign countries because of lower costs and the opportunity to enter new markets. There are several reasons why companies decide to have their products manufactured outside their home countries. One reason why companies operate in foreign countries is because of the operating costs. Several foreign countries offer operating costs at lower prices. This includes a lower labor cost. There have been some companies that reported they saved as high as 50% in payments for salary due to operating in foreign countries (Joseph, n.d.). The savings in costs is probably the most obvious benefit to operating outside home countries. Business owners can get their work done at lower costs to the company. The wage differences between countries of the west and countries of Asia helps businesses to save money when working overseas, as well. For example, if there were two companies, one in the United States and the other in China, and they did the same job, the workers in China would be paid far less than the workers in America. The same work can be done in China at a fraction of the cost. Another reason why companies choose to manufacture outside their home countries is because they have

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