United States Trade Policy and the Possible Effects on Apple's Supply Chain

Running head: US TRADE POLICY AND THE POSSIBLE EFFECTS
United States Trade Policy and the Possible Effects
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Introduction
The organizations of international trade policy have changed considerably since the
conclusion of World War II, led majorly by the United States of America and the European
counterparts. The importance of trade to the United States has increased since the formation of
the policy in line with the wider extension of international trade over a specified period.
However, it is alleged that the decline of the United States in manufacturing has been attributed
to the policy effects especially on the development of Asian imports (Galiani, Schofield
&Torrens, 2014). For this reason, the current United States leadership withdrew in one of the
parts of the foreign trade agreements (TPP) and had also criticized the policy as they advocate
for bilateral trade.
Momentous activities across the globe have heightened awareness of how detrimental
risk can be to a business. As a result, supply chain risk management has become top of mind for
many companies around the world. When disasters such as earthquakes and hurricanes hit, single
disruption creates disruptions along the whole supply chain (Kováč & Žigić, 2014). Therefore,
an all-inclusive risk management strategy must incorporate steps to identify, evaluate, and
execute risk mitigation strategies that handle potential disruptions around multiple nations. The
focus, in this case, is Apple Inc.
Apple is among the top American corporations that manufacture computer software and
other electronics for consumers. The company is well known for its products such as Macintosh
group of computers, the iPhone, iPad, and iPod. It currently has over 35 stores in different
countries across the globe as well as an online store that provides the hardware and software.
Apple has been ranked at some point as one of the largest organization in the world about market

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capitalization. It, therefore, means that it is an organization with the largest market
internationally about both profits and profit creation. Apple was established in 1976 and later
incorporated the following year. The existing name reflects the continuing improvement in its
range of products and market diversification.
Market
Apple is an organization based on items and competes in the market with different other
consumer goods organizations. Nevertheless, to cultivate a competitive benefit over its
competitors, the organization runs an exceptional marketing strategy for its products. The unique
establishment of a wide range of its products has made the company enjoys a huge base around
the whole world (Haraburda, 2017). It has diversified the market and variety of products to
expand its profits and market share. Some of the Apple’s highest traded products are the iPods
which enjoy worldwide acknowledgment.
Risks associated with current and future US trade policy posed to Apple’s value chain;
supply chains, operations, and demand chains
Trade policy
The Trade policy is the regulations and conformities that manage the imports and exports
to foreign nations. Companies must first recognize those risks to maintain global supply chain
risks. The two trends impact the dynamics of global supply chains; consolidation and
globalization of the organizations resulting in increased ambiguity in logistics operations at the
tactical, outfitted and strategic levels.

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US Trade policy has effects on different companies especially those that mainly rely on
the raw materials and consumers from outside the United States of America. Trade policy is
characterized by tariffs that are also known as customs duties (Evenett & Meier, 2013). These
are the main the essential tool of the trade policy. These trade tools make up the finance charges
on the imported products levied by the governments and collected by the concerned customs
authorities. The primary role is to protect the internal processes from competition amounted to
cheaper imports. All the nations involved in the trade base their tariffs on a harmonized scheme,
which contain 99 chapters that cover more than 5,000 personal product descriptions and several
divisions (Creelman, 2016). In every product, the government apply the chosen rates of tariff or
sometimes not applicable. In most cases, the government does apply a tariff export of an item
which is a precious and vital national resource, to daunt exports and maintain domestic supply.
America as a nation gains a lot from foreign trade; however, despite all these gains, there
are changes costs for employees displaced by imports. The leadership of the US has been critical
of these trade policies, and that has created uncertainty concerning economic policies which is
likely to lower global trade and investment, along with connected gains (Cokins, 2013).
Therefore, Apple being of one the companies that are primarily engaged in international business
is affected by economic uncertainty risk.
Economic circumstances caused by the Trade policy could significantly and adversely
affect the organization. The uncertainty of the international economic environment creates an
enormous risk to the corporation through consumers and business features. The imports that are
deemed to be ruining the domestic cost-effective status may possibly reduce the demand of the
corporation’s goods and services, as a result of the declined revenue and insufficient self-
assurance, such as strict credit strategy, unemployment rise, depressing economic news and