Reflection on Shirley Zhou’s “ Iphones Designed in California, But Assembled in China”.
I agree with Shirley’s post which states the truth of the phenomenon which designing and assembling products from different
countries. Not only IPhones but also other industrial products, most of them were made in China, Philippines and Indonesia. Shirley
has already clearly explained the reasons of the labour shortage in most developed countries and cheaper and surplus labour in
developing countries.
According to the textbook, globalization of production takes advantage of national differences in the cost and quality of various
factors of production, such as labor, energy, land and capital. However, not all offshorings are about labor price. For example, IBM
does global hunt for talent so that it can reduce costs.
I do not think this phenomenon is not good. It fills different needs to different countries which links the countries together. As Shirley
stated, the multinational manufacturing makes advantage of labour surplus in developing countries which add more value to their
economy, and also helps developed countries as well. It benefits both side, why not do that?