Globalization, Factor Endowments, and New Zealand Business Report

This report provides an analysis of the impact of globalization on Apple, a leading consumer electronics company. It examines how globalization has influenced Apple's strategies, including differentiation and outsourcing, and the implications of Brexit and the China-US trade war. The report also explores factor endowments in Australia and neighboring Asian countries, highlighting their impact on trade patterns. Furthermore, it assesses factors affecting the ease of doing business in New Zealand, including its regulatory environment, infrastructure, and credit availability, while also addressing potential issues and challenges. The report utilizes various sources to provide a comprehensive overview of international business dynamics.

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INTERNATIONAL BUSINESS

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Contents
1. Implications of Globalization on Apple...................................................................................3
2. Factor endowments in Australia..............................................................................................4
3. Factors and issues affecting New Zealand ( 1st ease of doing business).................................5
Bibliography....................................................................................................................................6

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1. Implications of Globalization on Apple
The organization that is researched is Apple that is a consumer Electronics
Company headquartered in California. Apple has been the top player in the field of
technology products and services that include iPad Mac, store stores and other range of
personal computers. Globalization has affected every new company that came into the
market in many ways (Ahn, 2017). It had been responsible for the revenue and growth of
companies as they expanded their target segment catering to a large number of
consumers. Moreover, it has also provided with good supplies of components at an
affordable cost. Like other companies, the wave of the globalization also affected Apple,
some of the implications are-
 Adoption of differentiation strategy-
Globalization has expanded the market segment of the company in other countries that led
made the Apple to adopt the differentiation strategy for its products and services. It started to
focus on every market segment that included large, medium and small corporations to help them
like the products and services (Bason, 2015).
 Products and services
Apple is known for in-house manufacturing of products but due to the advent of the
globalization, the company started outsourcing the production of various products to other parts
of the globe. This also helped apple achieve a better quality of some products (Dalati, 2016).
 Outsourcing supplies-
The globalization has also made the company to start its operations in other countries. The
reason for starting the operations in other countries is the motive of decreasing the cost of
production. One of the places where the factory was established after the advent of globalization
was in China. The profitability of the company increased due to the low cost of production
(Dalati, 2016).

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The globalization has also made them export their products and services to various countries
such as India, South Africa, Asia, Europe, and China. The export of the goods and services to
other countries improved the profitability and growth of the company.
Yes, they imported supplies from overseas that included various parts of the products so that
the high quality of the products can be designed effectively. The globalization has also made
them achieve the best ways of doing things.
Implications on Apple due to Brexit and China-US resolution
 Low buying power of apple products in UK-
The act of the UK leaving Europe will affect the economy of Europe badly, as the economy
of Europe get affected the buying power of the citizens also get affected badly thus leading to the
decreased purchases.
 High tariffs on China imports-
The ongoing war between USA and China increased the tariffs rates that is 1o percentage on
China products thus making it difficult for the Apple company to import the products. The
increased tariff rates have increased the cost of production of the products thus affecting the
profitability of the company (Doing Buisness, 2020).
 Affecting the Chinese markets-
The War between the USA and China had affected the most profitable market of Apple that
is China. The Chinese people are technology-driven and most of the sales and growth comes
from China. The war had affected the revenue and growth of the company.
2. Factor endowments in Australia
Factor endowments in Australia
Australia has a huge factor endowments in the form of natural resources, such as various
valuable minerals that include bauxite, Iron ore, lead, gold and many others (Ahn, 2017). The
minerals are exported to other countries thus helping them in their usage in the best possible
manner. Besides these non-renewable energy resources, the country is also a good source of

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renewable resources that include sunlight, wind and geothermal energy (Glover, 2014).
Renewable energy is used in developing solar and wind energy plants that help generate low cost
of production for various operations. Australia also has a good land and water resources thus
making it suitable for the businesses to establish there. The availability of the large part of land
make it one of the desirable places for various foreign factories to establish there.
 Factor Endowments of Neighbouring Asian nations including China, India,
Singapore, Vietnam and Indonesia
The other Asian countries such as China, India, Singapore, Vietnam, Japan and Indonesia
are also known for their factor endowments. China’s large population results in the supply of
the cheap labours thus reducing the cost of production of the companies. Due to the cheap
labour, China has become the manufacturing capital of the country as many of the companies
establish the factories there (Kim, 2015). In Japan, the availability of a highly-skilled
workforce helps in providing the best services to the target population thus resulting in the
manufacture of the good quality of the products and services. In India, the diversity of
landscape provides the best renewable and non-renewable resources thus resulting in better
achievement of the things.
In Indonesia, the young and growing population offers a good opportunity for high
skilled work. Singapore also has its set of factor endowments that include business services,
skilled labours, and communication functions thus helping in the greatest achievement of the
goals (Bason, 2015). The good communication technologies make Singapore the hub of
various companies. In Vietnam, the most important factor endowments is the availability of
land and water thus making it tough for them to achieve it.
 Factor endowments reflect the trade patterns
The factor endowments reflect the trade patterns of the way the country functions. In
China, the availability of cheap labour makes it a manufacturing hub while in Japan, the
skilled workforce ensures the high quality of products. In India, the easy availability of
minerals such as steel makes it one of the largest exporters of steel to other parts of the
world. In Australia, the minerals helped set up of businesses or factories. These trade patterns
are reflective of the type of minerals that they have.

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In Singapore, most of the businesses are into telecom network, it is because of their good
communication network. Therefore, it can be concluded that these factors help achieve the
right pattern of trade so that a good amount of profitability and growth can be achieved for
the nation.
3. Factors and issues affecting New Zealand (1st ease of doing business)
 Factors affecting the New Zealand ease of doing business
The country that is selected in ease of doing business in New Zealand. It is
considered the country where the business can easily get itself settled in the best possible
manner. The factors that make it one of the countries of ease of doing business is its
requirement for no paid-up capital. Secondly, Procedures of starting a business are also
simpler thus making it easier for the people to achieve it effectively. For example, it is
quite easy to register a company in New Zealand through websites or by visiting the
companies’ office. While registering the company, there are also very less information
that is asked in the forms thus making it for the new business to set up with ease (The
Business Communication, 2019).
In the area of obtaining construction permits, the country stands at 15 where it
easily grants construction permits to many people. In the construction permits, various
sewerage and water facilities are eased by the laws of the governments. The other
important factor that is required in setting up of the business in the best possible manner
is getting of the required facilities is the well-equipped electricity system that is helpful
for businesses to get started the best ways of doing it. Moreover, the score in the areas of
time, procedures, cost, and supply is above 80 percentages thus pointing to the ease of
electricity availability (Fleisher, 2019). The other important factor is a registration of the
property where the property is registered effectively. The score of all the elements for
property registration is above 90 thus making it feasible for many countries to register
their property with ease in the country.
The third important factor is the easy availability of the credit that is reflected through the
100 score of the country. It makes it easy for the business to get the credit for various
operations of the business (Doing Buisness, 2020). The fourth important factor is of

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paying the taxes that also makes the country to score the highest in the category thus
making it easier for them to collect the taxes.
 Issues of concern
Despite various supportive laws in New Zealand, various issues include political
instability, changing consumer needs and preferences, a high competition to domestic
enterprise in New Zealand, and increased Foreign Direct investment. New Zealand which
is a democratic country has to face a politically unstable situation that arise due to the
change in the laws. Moreover, the ease of restrictions for the foreign trade in the country
has given high competition to the domestic companies thus leading to lower profits
among domestic companies (Glover, 2014). Such issues affect the growth of the
domestic companies thus affecting the country Gross domestic product.

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Bibliography
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satisfaction in the context of Business Simulation Game. Journal of Service Research and
Studies, 7 (4), 151-164.
Bason, T. (2015). Corporate social responsibility through sport: a longitudinal study of the
FTSE100 companies. Sport, Business and Management: An International Journal, 5
(3), .218-241.
Dalati, S. (2016). Sustainable development in higher education through service quality and price
fairness: empirical evidence from private universities in Syria. Entrepreneurship and
Sustainability Issues, 4 (1), 25-38.
Doing Buisness. (2020, 3 15). New Zealand Report. Retrieved March 23, 2020, from doing
business: https://www.doingbusiness.org/content/dam/doingBusiness/country/n/new-
zealand/NZL.pdf
Fleisher, C. S. (2019, August 20). Business and Competitive Analysis: Effective Application of
New and Classic ... New York, New Jersey, United States.
Glover, I. (2014, July 14). Role-play: An Approach to Teaching and Learning. Retrieved July 26,
2019, from blogs: https://blogs.shu.ac.uk/shutel/2014/07/04/role-play-an-approach-to-
teaching-and-learning/
Kim, J. (2015). Crafting a single cloth: an essay presented in partial fulfilment for the degree of
Master of Design, Massey University, Wellington, New Zealand. Doctoral dissertation,
Massey University, 554-600.
The Business Communication. (2019, August 1). Business Communication. Retrieved August
15, 2019, from the business communication:
https://thebusinesscommunication.com/what-is-business-communication/

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