How outsourcing and offshoring contribute to globalization
Globalization is the reason why businesses operate internationally. Globalization existed
before the internet, but the internet helped it, and today the world has become like a global
village (Passas 2017). The process by which a business or another organization develops
international influence on an international scale is globalization. Companies use several
strategies to operate internationally, and one of the strategy is offshoring and outsourcing.
Offshoring means the relocation of the business process from one country to another,
usually an operational process such as manufacturing ( Marshall, McCarthy, McGrath and
Harrigan 2016). Apple is a valuable company in the world with a capitalization of just
about $1 trillion (Deagon 2018). The success of Apple can partly be because of its supply
chain management strategies that allow it to use the offshoring strategy. Most of the raw
materials Apple uses to make, iPhone the bestselling product in its product portfolio come
from Asia, especially, areas such as Singapore, Korea and China. Transporting the raw
materials from Asia to the United States and the later producing in the United States and
then shipping the final products to different warehouses around the world is costly and
makes it expensive (Clarke and Boersma 2017). Rather than transporting raw materials
to the United States, Apple moved its manufacturing processes to China, taking
advantage of the cheap labour. Offshoring allows Apple to run some of its business
process in China and Singapore which proves to be cheaper because Apple is saving on
the cost of transporting raw materials, instead it transports finished goods and also, the
company saves on labour. Production from Asia is cheaper, ensuring that the price of the
