CURRENT EVENTS UNIT 7
ANDREW L. FOXWORTH JR.
With the outsourcing of American jobs to foreign countries the United States economy has seen major changes over the past decade. Small businesses and major companies have closed down all over the United States at unprecedented rates to seek cheaper manufacturing in other countries. Many highly profitable businesses such as Apple Inc. have under gone major restructuring internally in order to survive. Businesses are outsourcing jobs and manufacturing to Foreign Countries just to survive. Manufacturing in the United States take a toll on companies profit margin therefore, it is beneficial for them to outsource continue to maintain a quality product for the consumer.
1Apple earned over $400,000 in profit per employee in 2011, more than Goldman Sachs or Exxon. Yet in the last few years, it has created few jobs in its home base and prime market, the United States. According to the Times account, “Apple employs 43,000 people in the United States and 20,000 overseas, a small fraction of the over 400,000 American workers at General Motors in the 1950s, or the hundreds of thousands at General Electric in the 1980s. Many more people work for Apple’s contractors: an additional 700,000 people engineer, build and assemble iPads, iPhones and Apple’s other products. But almost none of them work in the United States. Instead, they work for foreign companies in Asia, Europe and elsewhere, at factories that almost all electronics designers rely upon to build their wares. “
As Apples’ focus lies in the unique design of its products and its strength can be seen in the fields of innovation, creativity, and marketing, it only makes sense that the company focuses on these core functions and outsources its manufacturing activity to contract manufacturers that specialize in this function. Therefore, Apple can reap benefits in terms of a lower cost structure, opportunities to differentiate its products, and...