Impact of Globalization on US economy: iPhone Case
The world today is like a village. One does not need to be in a certain country in order to conduct business in that nation. With advancement of technology and countries specializing in certain areas, global trade has increased over the years. Through this, globalization has been born and it is now playing a crucial role in the world economy. Globalization refers to integration of various economies across the world. Having the dollar has been very helpful in making United States a major player in globalization. Globalization has opened different means of how US can trade with other countries. This essay will look at how globalization has affected the US economy over the years.
Figure 1 shows a person using an iPhone
Figure 1-Impact of Globalization on US economy
In the US, companies play a significant role in helping boost the economy. They are the backbone of the economy and if companies or manufacturing sector collapses then it will force the economy to plummet. Today, Apple is one of the largest company in the world. Apple has been at the forefront in promoting globalization through its iPhone. The case of iPhone is the best since it shows how globalization has made the world smaller. Additionally, it demonstrates how technology has been useful in promoting globalization and helping countries trade with each other even more.
Apple products, specifically iPhone, are bought across the world. There is no single place that one will g and fail to see this mobile brand. From Europe to Asia, iPhone are bought on a large scale. People are willing to sacrifice in order to buy such a phone. This is how powerful iPhone brand has become in the world mobile phone industry. IPhone is now a worldwide brand, thanks to the effects of globalization. Due to this increase in sales, the stock market price for Apple stock has been increasing over the years. Similarly, the revenue generated by Apple through the sale iPhone has also increased and this will only increase as more and more people in the world continue to fall in love with iPhone. The increase in revenue collected means that the government gets more taxes from Apple. Therefore, it can construct more infrastructures since it has the means. The people also get to benefit from the money injected into the economy by the government. Because of huge sales of iPhone in the international economy, Apple has also employed more people. It has reduced the rate of unemployment in the country and provided people with a source of income. Americans have a better purchasing power and can access superior services from hospitals and other sectors thanks to the tax paid by Apple.
Figure 2 shows eager customers waiting to buy an iPhone in India
Figure 2-Impact of Globalization on US economy
If there was no globalization and Apple could not sell its iPhone to the world market, the company would not have been able to achieve the global name it has attained. Through globalization, US has entered into trade deals with countries such as China, Germany, Britain, and Canada among many others to engage in trade with these nations. Trade deals are crucial part of international trade since they open borders for countries to export and import products with each other. They open doors for new markets for US companies like Apple, which depends not only on the US economy but also on other economies around the world. If therefore, the US fails to strike out trade deals and cooperate with other nations then US companies are at a losing position. This points out how important government participation in world economy has become. Without government, willingness to open its borders and allow trade with other countries to flourish, then globalization cannot achieve the desired effects. When US participates in trade with other nations like China, Canada, Mexico, and Germany among others, it promotes globalization. Due to globalization, US can export electronic items which it has a huge advantage over others. In return, it imports other items such as cars and petroleum from other countries like Germany and Saudi Arabia, which can produce such goods at a lower cost. Thus, globalization, leads to specialization with countries focusing on what they can produce better. In line with this, companies such as Apple stick to what they do best and do not need to diversify since they are assured of a ready market for their phones.
The process involved in making iPhone also demonstrates how globalization has been useful. Apple is not made entirely in the US. The different parts that make Apple are made by different companies situated in different countries such as Taiwan, China, Indonesia, Japan, and South Korea. These parts are shipped to China where there is cheap and readily labor for assembling them. This supply chain shows the synergy of countries coming together and allowing trade to exist among them. People might think that Apple is made in its entirety in the US. However, as highlighted this is not the case. Different companies are directly and indirectly involved in the process of manufacturing iPhone. These companies also play an indirect role in promoting the US economy because of their vital contribution in making the iPhone. If the US did not have good trade relations with these countries then it would have hindered globalization and hurt its own economy. Nevertheless, some people complain about the export of job opportunities to these countries but this is outweighed by the benefits accrued from selling the phones globally. Moreover, due this cooperation with other companies, the phones are cheaper and customers are able to save some money.
Figure 3 below shows the companies involved in manufacturing iPhone.
Figure 3-Impact of Globalization on US economy
In conclusion, globalization has been useful for US economy. The case of Apple speaks volumes about the importance of globalization. The world is smaller today than ever before and with more advancement in technology, it can only get smaller. People, countries, and companies in different parts of the world will continue to trade. IPhone will continue raking in for Apple millions in revenue as long as US maintains good relationship with its trading partners as well as welcoming new ones with open arms.
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