Apple Inc. and the Effects of US Trade Tariffs: MGMT20144 Presentation

This presentation analyzes the impact of US President Trump's tariffs on Chinese imports on Apple Inc. The presentation begins by outlining the context of the trade war, including the tariffs imposed on various goods. It then examines the specific effects on Apple Inc., including the potential impact on the company's supply chain, manufacturing, and customer base. The presentation explores the external factors influencing Apple, such as political support, technical advancements, and economic conditions. It highlights the challenges Apple faces due to the tariffs, including increased production costs and potential loss of market share. The conclusion emphasizes that changes in external factors can significantly affect a company's business operations, potentially leading to strategic shifts such as relocating manufacturing. The presentation references sources such as Forbes.com and Politico.eu to support its analysis.

CURRENT EVENT AND THE EXTERNAL
AND INTERNAL ENVIRONMENTS OF
ORGANISATIONS
CASE OF APPLE. INC.

INTRODUCTION
• This presentation will be discussing the US president Trump’s new
tariffs on the Chinese imports and how this will affect the business
of the US based companies.
• This event has affected the global economy as most of the large
corporations have their root in the US.
• To the researchers, this initiative of Trump may cause to Trade war
with China as well as the countries of the European Union certainly.

SUMMARY OF EVENT
• On January 2018, Trump has imposed quotas and tariffs on the
imported solar panels, washing machines, steel and aluminium.
• He has imposed $200 billion tariff on Chinese goods imported
in the USA (Forbes.com, 2019).
• This escalated trade barrier have arisen the prices of the
products of the US companies operating in China.

SUMMARY OF EVENT
• To the President this rise of tariff is important as this will help the economy
of the country.
• Due to this tariffs, the companies which used to operate in China will build
more plants in the U.S.
• By enhancing the number of branches these companies will be able to keep
the production costs low.
• In this initiative the most affected company
will be Apple Inc. as the entire
manufacturing unit has been situated in the
Chinese market.

SUMMARY OF EVENT
• This incident of introducing new
economic policy from the end of the US,
has after the companies like Apple Inc
hugely.
• This is due to the fact that China with the
highest populated market, is an
important manufacturing hub
• It is also attractive for the US
corporations due to cheap yet skilled
labour force and lucrative market for its
products.

SUMMARY OF EVENT
• This issue has covered a wide
variety of products of Apple
Inc, the global technology
giant of the world.
• Due to this changes in tariffs,
to circumvent duties, Apple
Inc. may move their
production unit to the U.S.
and some other markets.

EFFECT OF EXTERNAL CHANGES ON APPLE
INC.
• Each of the nation, presents their own special as well as
unique benefits for the companies.
• Therefore, the companies must take all the emerging market
opportunities and overcome challenges.
• In this trade war between America and China, Apple has
been suffering and it will create pressure on the customers
to equalise its own profit.

EFFECT OF THIS EVENT ON APPL
• The proposed tariff by Donald Trump on
200-billion-dollar worth of Chinese goods
can affect the company’s products like
Airport, Apple pencil and Apple watch.
• This issue has an economic aspect that is
closely connected with the external as well
as internal environment of the company
(Politico.eu, 2019).
• The stability of economy and regulations
attract the company to enter the market of
a nation and operate successfully.

EFFECT OF THIS EVENT ON APPLE.INC
• Apple Inc. is a global company which has its
base in the US.
• The company largely depends upon the
Chinese market in terms of production,
cheap labour force and huge market.
• Moreover, the external environment like
political support, technical advancement,
social and economic positivity has
encouraged the company to enter this
market and operate successfully.

EFFECT OF THIS EVENT ON APPLE.INC
• This change in economic
regulation will discourage the
company to stay in the Chinese
market and utilise its resources.
• In the case of Apple Inc, it
largely depends upon Chinese
Market of the manufacturing
mainly and if the tariff
increases, they will lose the
customer base on the ground

CONCLUSION
• Therefore, it can be concluded that the changes in the external factors of a
company can affect the business in such a manner that it may leave the
market.
• In case of Apple Inc. the American President’s introduction of new tariffs
imposed upon the Chinese goods has discouraged the company to do
business in China.
• Hence, to survive the loss, the company may open new plants in the US by
leaving the advantages of the Chinese market.

REFERENCES:
• Forbes.com. (2019). How A Trade War With China Would Impact Apple's Valuation: An Interactive
Analysis. Retrieved from
https://www.forbes.com/sites/greatspeculations/2018/09/11/how-a-trade-war-with-china-would-impa
ct-apples-valuation-an-interactive-analysis/#6fc71da865c2
• Frankel, J. (2019). Trump's trade wars and Brexit are making us all poorer | Jeffrey Frankel. [online] the
Guardian. Available at: https://www.theguardian.com/business/2018/nov/27/trump-trade-war-
monetary-policy-central-banks [Accessed 18 Jan. 2019].
• Politico.eu. (2019). Donald Trump issues new trade threat to EU. [online] POLITICO. Available at:
https://www.politico.eu/article/trump-trade-war-issues-new-trade-threat-to-eu/ [Accessed 18 Jan.
2019].