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 don’t 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?