Scribd Logo
Upload

Welcome to Scribd!

  • Apple's Fdi

    Uploaded by

    ezralhakimi
    395 views2 pages
    Foreign direct investment (FDI) refers to cross-border investments made to establish or maintain a business in another country. FDI is undertaken to take advantage of cheaper wages, production costs, or special investment incentives offered by the target country. In its early years, Apple manufactured most of its devices in California. By 2004, Apple had largely outsourced manufacturing abroad. The iPhone, first introduced in 2007, had about 90% of its hundreds of parts manufactured overseas, primarily in China, Germany, Taiwan, Korea, and Japan. Apple cites China's ability to quickly scale up and down production in response to demand changes as a key reason for making it a center for iPhone foreign direct investment and assembly.

    Original Description:

    Apple's FDI in China

    Original Title

    apple's fdi

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Foreign direct investment (FDI) refers to cross-border investments made to establish or maintain a business in another country. FDI is undertaken to take advantage of cheaper wages, production costs, or special investment incentives offered by the target country. In its early years, Apple manufactured most of its devices in California. By 2004, Apple had largely outsourced manufacturing abroad. The iPhone, first introduced in 2007, had about 90% of its hundreds of parts manufactured overseas, primarily in China, Germany, Taiwan, Korea, and Japan. Apple cites China's ability to quickly scale up and down production in response to demand changes as a key reason for making it a center for iPhone foreign direct investment and assembly.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    395 views2 pages

    Apple's Fdi

    Uploaded by

    ezralhakimi
    Foreign direct investment (FDI) refers to cross-border investments made to establish or maintain a business in another country. FDI is undertaken to take advantage of cheaper wages, production costs, or special investment incentives offered by the target country. In its early years, Apple manufactured most of its devices in California. By 2004, Apple had largely outsourced manufacturing abroad. The iPhone, first introduced in 2007, had about 90% of its hundreds of parts manufactured overseas, primarily in China, Germany, Taiwan, Korea, and Japan. Apple cites China's ability to quickly scale up and down production in response to demand changes as a key reason for making it a center for iPhone foreign direct investment and assembly.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Definition of Foreign Direct Investment (FDI)

    The Foreign Direct Investment means cross border investment made by a resident in
    one economy in an enterprise in another economy, with the objective of establishing a lasting
    interest in the investee economy. FDI is also described as investment into the business of a
    country by a company in another country. Mostly the investment is into production by
    either buying a company in the target country or by expanding operations of an existing
    business in that country. Such investments can take place for many reasons, including to
    take advantage of cheaper wages, special investment privileges (e.g. tax exemptions) offered
    by the country (R. Luecke, 1994).

    FDI Made by Apple Inc.
    In its early years, Apple usually did not look beyond its own backyard to manufacture its
    devices. As late as early 2000s, Apple still manufactured major of its computers at the
    companys iMac Plan in Elk Grove, California.
    By 2004, had largely turned to foreign manufacturing. The shift to offshore
    manufacturing reached its peak with the iconic iPhone, which Apple first introduced in 2007.
    All iPhones contain hundreds of parts, an estimated 90 per cent of which are manufactured
    abroad. Advanced semiconductors come from Germany and Taiwan, memory from Korea
    and Japan, display panels and circuitry from Korea and Taiwan, chipsets from Europe, and
    rare metals from Africa and Asia. Apples major subcontractor, the Taiwanese multinational
    firm, Foxconn, performs final assembly in China.
    Apple cites a number of factors in deciding to assemble iPhone in China. Instead of
    low labour costs, the ability of Chinese subcontractors to respond promptly from Apple to
    scale production up and down is one of the drivers for iPhone to choose China as its FDI
    base. For instance, in 2007 Steve Jobs demanded that a glass screen replace the plastic screen
    of his prototype. Jobs

















    R. Luecke. (1994). Foreign Direct Investment. Oxford: Oxford University Press.

    You might also like