In early 2020, a pandemic emerged in Wuhan, China, which would later spread worldwide, invoking quarantine procedures and the shutdown of most non-essential businesses (Chow, Murphy, Muccari 2). These procedures led to a monumental standstill in the global economy, shutting down major supply chains. It has also led to a transition in the way people have interacted on an international scale. To stay connected during this time of physical distance, people have been increasingly reliant on their laptops and mobile devices. People have been working and learning from home using programs like Zoom, WebEx, and other web conferencing platforms, which are inherently reliant on the technology that permits their use. While the use of technology as a primary means of communication for businesses on the international scale has been the primary agenda for many international corporations, such as Zoom Video Communications, it has been drastically accelerated due to COVID-19. Research Director for social and collaboration at IDC says, “Everyone was forced to do a seven-year plan in two weeks” (Iyengar 1).Companies like Apple Inc. that produce technology that has been instrumental in promoting communication during this time via products, like MacBook laptops and other devices. Such rapid technological movement in such a short period reveals in the importance and relevance of laptops, specifically MacBook laptops, during this time is immeasurable, but what is the impact of MacBooks on the international global economy?
I argue that Apple’s influence on the global economy is pivotal, particularly in terms of international supply chains. This economic influence is furthered by the environmental and sustainability efforts done by Apple Inc., to various degrees of success. They also have political influence seen on the policies enacted globally and the economic burden of failing globalism after the catastrophic effects of COVID-19 and the tendencies for protectionist policies. I conclude that Apple’s influence and technology has had and continues to hold a monumental impact on the international political economy.
Globalized supply chains have been an integral part of the international economy. Apple Inc., the producer of MacBooks, has diversified manufacturing interests and is highly globalized. While products produced by Apple, a U.S. based company, are designed in California, Asian countries with low manufacturing and labor costs manufacture the individual parts, such as the hard drive, RAM, and Wireless Chip, and assemble the final product. Their supply chain extends to Japan, China, Singapore, and South Korea, as well as some European countries like Poland (Fruhlinger 2-6). Apple has a massive influence on the economy in Asia as well as worldwide. In 2017, Apple created and supported 4.8 million jobs in China. The high demand for labor forces is a direct result of the high demand for Apple Products. Approximately 18.3 million computers were sold worldwide in 2018 in addition to the numerous other products they produce and distribute (Statista.com), leading to an impressive amount of sales amounting to nearly $260.2 billion. Apple has a significant amount of influence on the global economy and the world, but, unfortunately, like most major international corporations with a massive impact on the economy internationally they have the potential to enact some negative consequences regarding the treatment of employees and environmental impact.
While there are benefits of employing labor in countries, such as China, with low manufacturing and labor costs, such as maximized profits and quantity of production, there are many severe consequences, namely working conditions and lack of proper payment. Poor conditions for factory workers are an imminent problem. A recent news story about a Foxconn factory in China was groundbreaking in revealing some of the working conditions of the factory employees who work to assemble the Apple product. The article discussed the harsh conditions that led to high rates of suicide and worker distress (Merchant 4). Workers demanded reform in terms of brutal conditions, long hours, and low wages. The lack of acknowledgment from Foxconn management led to drastic action to demand change, culminating in 150 Foxconn workers threatening to jump off the factory roof if they did not see the necessary reform (Merchant 5). Despite Apple's connection with the Foxconn factory as a massive producer, the employees did not blame Apple, but they still perpetuate a system that demeans and disenfranchises its workers. However, despite issues with the ethics regarding the treatment and well-being of the workers who produce Apple products, Apple has been more progressive. Greenpeace rates the sustainability and environmental efforts of many major corporations, including Apple. Apple received a rating of sustainability efforts in China as a "B-" placing it in second place among other similar businesses (Webb 3). They also have more impressive ratings from Greenpeace in their efforts in sustainability and environmental preservation, receiving ratings of "A-" in the utilization of renewable resources as well as a rating of a "B" in the elimination of hazardous materials (Webb 3). Efforts for improving sustainability and diminishing the environmental impact of manufacturing and production, despite the mistreatment of workers, are commendable. As a massive corporation and global influencer, Apple has a significant influence on setting trends of a greater focus on the importance of sustainability and environmental efforts on the international scale.
The influence of COVID-19 on the global economy has been unmistakable. Unemployment rates have skyrocketed while production has stalled. Japan and Germany have struggled with weak growth during COVID-19, particularly in terms of production, potentially leading to a global recession. Supply chains have been severed with country-wide efforts to stall the spread of the coronavirus. Apple has not been an exclusion to the dramatic influence of COVID-19 on Supply Chains that support the production and dispersal and sales of products. Factories and other prominent players of manufacturing and production have struggled to produce and ship parts overseas with increased regulations and have faced severe setbacks. Apple Stores have had to close their doors temporarily during social distancing and the emergency regulation to shut down all non-essential businesses. This has had an impact on the customers of Apple. Repairs for Apple products has been nearly impossible from Apple stores and has led to unhappiness. Customers are seeking out non-Apple repairs, removing business from Apple, and preventing customers from retrieving their MacBooks if they were in for repairs before preventative measures were put in place for COVID-19 (Agarwal 3). The lack of business due to supply chain and COVID-19 regulation on a global scale and the effects of globalization has led to an increased amount of support for Protectionist Policy (Nee Lee 1). The reliance on global supply chains and the consequences that occur when they fail have been highlighted during the recent pandemic. This presents new dilemmas in how manufacturing and assembly will proceed in the future of Apple and MacBook Production.
Apple and MacBooks possess a massive means of influence on the global economy, from the treatment of workers, the environmental impact of production, and the way the world communicates during the pandemic to the supply of jobs and services to users worldwide. From a mercantilist perspective, a transition towards more protectionist policies from a political perspective is a rational response to the impact of COVID-19. Mercantilism favors governmental intervention in international economic relations in order to increase state power and security. The threat to many economies after the failure of many global supply chains has had a devastating on many economies, potentially leading to an international recession. By adopting more stringent economic policies and moving away from Laissez-Faire principles in the face of the devastating current pandemic, there may be a significant push away from globalized economic systems. MacBooks have been an important means of communication and the negative influence of the disrupted global supply chains has been significant. Paying attention to the influence of Apple Inc. and its devices is crucial to understanding the immense impact and influence on the international political economy during COVID-19.
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