T.J. Franzese
Global value chain Globalization has become an encouraged international free trade, creating jobs and resulting in economic growth. The worldwide network of exchanges between countries has also helped consumers as well. However, the United States has seen the outsourcing of manufacturing positions as a major problem in creating jobs. In the growing Smartphone and electronics industry, America’s most recognizable brand Apple is caught in the middle of the complex global dilemma.
Apple contends the company’s responsibility is to produce the best quality product in a cost-effective way. American leadership claims that one of the worlds most innovative companies is contributing to Chinese workers outpacing Americans. Apple has developed double the amount of jobs overseas, but the higher paid jobs still remain within the U.S. Chinese factories with dorms, and full-time workers are put through significantly worse standards in the workplace. Apple has been receiving a lot criticism for it’s handling of occupational conditions that are observed in these overseas factories. Apple is seen as a major company exploiting foreign business practices. Apple and other tech companies have admitted that American plants cannot match Chinese workers producing upwards of 10,000 iPhones daily. In addition to this, the advantage of having capable engineers along with the 200,000 assembly workers is something that companies have realized is far too expensive in the U.S.
Innovation has been the mechanism, which led to job growth. Even thou the Apple has looked overseas for effect and cost-effective manufacturing, they have also maintained the most important jobs in the U.S. It has been suggested that a high-tech product like the iPhone could be produced in the U.S. Certain strategies have been proposed suggest that Apple would still have 50 percent profit margin, even with manufacturing costs increasing. The fact that the company is projected to be performing well shows that shareholders care more about maximizing profits then leading the U.S. economy back to economic prosperity.
While design and engineering jobs in the U.S. are still highly lucrative, manufacturing jobs in Chinese factories are filled with occupational hazards. Factory conditions take advantage of under-age workers through harsh working conditions. It has been documented that Apple was notified of the factory conditions that overseas workers endured, but Apple exploited what were seen as normal business practices in that part of the world. Former workers have conveyed that the conditions would not be tolerated in the U.S. so why should they be tolerated in China. With profits in the billions, Apple would not risk its partnership with Chinese factories. The reports of twenty people in a factory dorm, and strenuous work hours wouldn’t satisfy apples conduct code in the U.S. so it should not be tolerated overseas. Chinese factory workers have complained about health issues, and inadequate safety measure. Apple however has not given much attention to it, but rather the company has neglected the entire situation in general.
U.S. Policy makers feel that Apple has a responsibility to help the U.S. through job creation. To Apple’s credit, the research and design have been the main contributors to Apple’s success. These research and design jobs have remained in the U.S. and have shown great benefit to U.S. workers within that industry. With U.S. professional workers receiving sixty-six percent of the earnings, manufacturing positions are believed to be a lost cause. Certain studies have cited China losing manufacturing and production jobs to lower-costing markets. The most fundamental solution to the globalized job market is to ensure that future workers are trained and prepared for new innovative positions.
Apple has been seeing both successes and some troubles while becoming one of the most successful companies. Their decision to outsource manufacturing jobs is a very critical decision that has impacted the global community. The U.S. has seen the setback from the lack of manufacturing jobs due to tech companies looking overseas. However, Apple has been taking advantage of overseas factories in several ways. Looking for cheaper, alternative factories is known as smart business. However, neglecting worker safety, and occupational hazards is major problem that does not set a good precedent. It shouldn’t surprise anyone too much thou, an Apple executive was quoted saying "We don’t have an obligation to solve America’s problems. Our only obligation is making the best product possible.”

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[ 1 ]. Xing, Y., and N. Detert. 2010. How the iPhone Widens the United States Trade Deficit with the People’s Republic of China. 6
[ 2 ]. Ibid . 6
[ 3 ]. Charles Duhigg and Keith Bradsher, “How the U.S. Lost Out on iPhone Work”, New York Times. January 21,2012. 9
[ 4 ]. Greg Linden, Jason Dedrick and Kenneth L. Kraemer “Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod” 6
[ 5 ]. Charles Duhigg and Keith Bradsher, “How the U.S. Lost Out on iPhone Work”, New York Times. January 21,2012