Mike Gibson
1/9/13
Shelly Daly
INTL 5800 First Night Assignment In the article Apple Agrees to Labor Reforms After ‘Serious’ Foxconn Violations shows a clear picture of the issues in the area of globalization. Foxconn has been producing the iPhone and iPad for Apple for some time now. What seemed to be a very beneficial deal for Apple, turned out to be a catastrophe, putting Apple in a tough position. Foxconn has been accused of poor working conditions for their employees. Many workers have complained about unfair treatment which has led to riots and 10 suicides. Also, the workers have claimed that the wages were too low. Foxconn took steps to satisfy the workers claims by increasing wages by 25% and hire more workers to …show more content…
The first way is that it touches on why companies engage in international business. Apples motive was to expand their sales, acquire resources, and to reduce their risk. They thought that it would be to their advantage to do business with Foxconn in making their products. The reason being was that the cost of production was very low which helped Apple to make huge profits. Another way that this article relates to the chapters is that it shows why companies care about ethical behavior. Apple knew that their image would be damaged if they disregarded the outcry of the Foxconn employees and the criticisms of the media. Even though they aren’t the only company that does business with them, they decided to take steps to reforming this situation because they didn’t want to allow it to ruin their image which would affect their sales and would decrease their advantage over competitors. Another way this article relates to the chapters is the labor conditions that are described. Employees at Foxconn are said to be over worked, treated unfairly, and paid very low. These are the issues that companies have to face when it comes to globalization. There are many things that have to be considered in this process. Globalization can be a big success if it is done the right way and that proper steps are taken. Ethics and responsible corporate behavior has to be taken into consideration as well. All three of these things are factors in success international business. Apple shows that they care about being successful in the international business spectrum by being ethical and taking responsibility for this situation at