There is no doubt that Apple Inc. will be known throughout history as a standard-bearer of American business clout as well as American innovation. With the rise of Apple products, one can walk down the streets of New York and easily see hundreds of people on an iPhone. As a beacon in the business world, Apple has a promising future as an American company. Inscribed on the back of every iPhone are the words, “Designed by Apple in California.” Many Americans, including myself, pride themselves on using a product made by an American company. However, Apple’s use of outsourcing is often overlooked. The Apple executives saw the advantage of outsourcing production to developing countries with less business regulation. It is undeniable that this shift towards overseas production has made it increasingly difficult for American middle class workers to find steady jobs in the manufacturing industry. Many other American companies have begun to use outsourcing to increase profits. Furthermore, outsourcing has served as a catalyst for the United States transformation from a primarily heavy export country to a primarily importing country. The immense profits of the iPhone have had a lasting effect on national economies. The Taiwanese company Foxconn produced the iPhones. Therefore, the iPhone is a prime representative of the global value chain, which is becoming increasingly common in the modern global economy.
In an effort to increase job opportunities for middle class Americans, many officials have vocalized their belief that Apple should shift production of the Apple products from overseas to the United States. The United States trade deficit has increased exponentially due to Apple’s outsourcing. Despite being advertised as a California based company, Apple products do not have the ability to be inscribed with the powerful words, “made in America.” Therefore, it is important to question the current role of America in the world trade. Despite being known throughout history as an American company, it is necessary to acknowledge the role of the various countries in America’s current economic standing.