International Business And Globalization

The core aim of most companies to expand and maximize profit. Most companies feel running international business has better benefits than its bad part. The main aim of this paper is to look at the advantages and disadvantages of doing business internationally with a focus on Apple Inc. According to international relation (2018), international business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries. International business can be beneficial, it also has its negative impact on the company if not handled or managed properly.

Apple Computers, Inc. was founded on April 1, 1976, by college dropouts Steve Jobs and Steve Wozniak, who brought to the new company a vision of changing the way people viewed computers (business reference,2015). Apple Inc specializes in making mobile phones, computers, software development, and testing, they have their headquarters in the California United States; and their factory in China. Apple Inc stocks are listed in the New York Stock exchange and NASDAQ (National Association of Securities Dealers Automated Quotations) under the symbol AAPL.

Apple Inc is a multinational company who specializes in making unique products and develops its operating systems its self through its intelligent developers.

Apple revenue breakdown by geographic segment: 6.6% from Rest of Asia Pacific, 7.7% from Japan, 19.5% from Greater China, 24.0% from Europe and 42.1% from Americas(Craft,2018). This means that the global businesses/locations of apple contribution more profit for the company. The Company posted quarterly revenue of $53.3 billion, this is an increase of 17 percent from the previous year quarter, and quarterly earnings per diluted share of .

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34, up 40 percent. International sales accounted for 60 percent of the quarter’s revenue of apple.

Apple has taking advantages of international business to maximize their profit because of cheap labor and cost of production in China. In this quest Apple took the advantage of marketing it’s phone through the international medium which are SingTel of Singapore, Bharti Airtel of India, globe Telephone Philippines and Optus of Australia. These companies which are based internationally helped apple add 100 million potential customers to its brand in 2008(UK essay, 2013). Apple Inc has contributed positively to globalization and has changed the ways business and cell phone manufacturing are done but they have also been of disadvantage. According to the Daily caller (2017), Apple Inc has made significant concessions to China over the years, contributing to the suppression of human rights and internet freedom, they have yielded to the Chinese government severally given into their demands even while knowing the government engages in unethical business conducts.

Apple Inc marketing internationally might be affected by political changes, this can be done by government policies which can have an adverse effect on the entire business. Currency exchanges rates can be of adverse effect also to the company because when the dollar falls it affects the repatriation of currency to the United States making Apple loss a lot of money which is a huge disadvantage to the company’s revenue and earnings. According to the primetime essay (2018), international competitiveness refers to the ability of a business being able to provide goods and service that offer a better value than its overseas rivals.

Apple Inc looking at their success over the year has demonstrated reliability, after the selling 150 million iPod in 2008 alongside many other achievements including iPhone. The aim and plan of any global company is understanding culture and its differences, as such Apple has stores all around the world. Apple stores create insane loyalty and attachment because the local staff uses a personalized approach to communicate with customers; Even the type of building matches the culture. For example, the Paris Apple Store is housed in a Haussmann-type building that is ideally suited to Parisians’ tastes in architecture (brand quarterly,2017).

REFERENCE

1. Essays, UK. (November 2013). International Business and Organizational Factors Apple Inc Smartphones. Retrieved from https://www.ukessays.com/essays/marketing/international-business-and-organizational-factors-apple-inc-smartphones-marketing-essay.php?vref=1
2. Daily Caller (2017). Power and billions of dollars: Apples deal with communist China and why they did it. Retrieved from https://dailycaller.com/2017/08/13/power-and-billion-of-dollars-/.
3. International business environment of Apple Inc. (2017, Jul 09). Retrieved from https://primetimeessay.com/international-business-environment-apple-inc/
4. Brand quarterly (2017): Apple’s One-Size-Fits-All Approach. Retrieved from ://www.brandquarterly.com/globalization-apples-one-size-fits-approach
5. Nasdaq (2018): Apple Inc stock symbol. Retrieved from https://www.nasdaq.com/symbol/aapl.
6. Apple (2018): Apple Reports Third Quarter Results. Retrieved from https://www.apple.com/newsroom/2018/07/apple-reports-third-quarter-results/
7. Craft (2018): Apple. Retrieved from https://craft.co/apple.
8. International relation (2018): What is international business. Retrieved from https://www.internationalrelationsedu.org/what-is-international-business/
9. Business reference (2015): Apple computer Inc. Reference from http://www.loc.gov/rr/business/businesshistory/April/apple.html