End Goal Portfolio

1. Identify three major countries with which your chosen company operates. Preferably, the three countries are in different continents.

Three major locations where the company Apple operate are the United States, the United Kingdom, and China.

2. Are these three countries members of the IMF, the World Bank, and WTO?

Yes, all three countries are members of the IMF, World Bank, and WTO

3. Do you believe that these three countries actively follow guidelines of these three major international institutions?

Yes, I do believe that all three countries follow the guidelines for these three major organizations as they should.

4. Compare the institutional structure of these three countries to determine if they promote globalization, i.e., (a) are their political institutions transparent and (b) do they have a functioning judiciary system?

All three of these countries are similar in the fact that they have political and judiciary systems that are not always transparent; however, in comparison with other countries, their transparency is impressive and does seem to encourage globalization. As they both have robust international economic trade that continues to trend upwards, it’s fair to say that their institutional structures do encourage globalization on a large scale.

5. Do you believe that the three countries under consideration practice policies that promote globalization? For example, what are those countries’ policies toward (a) governance, (b) competitive markets, (c) property rights, and (d) corruption?

China:

· Governance is considered to be critical for economic development. Good governance is crucial for sustainable development. For an increased market-oriented economy China is undergoing transformation in the system of governance.

· China has taken measures to enact law for combating monopolistic enterprises. The nation has received foreign investments for economic development.

· Property rights protection is the key to economic success in China. The nation has introduced several laws to protect the property rights of citizens.

· Corruption in China is an economic challenge. Corruption in China has been declared to be a threat to the economic development.

Private sector development is significant for the economic development of China and policies have been introduced for free entry of markets, privatization, protection of property rights. These policies allow foreign investments and entry of foreign goods which in a way helps in globalization.

United States and United Kingdom:

· Governance measures are to be reformed for products in changing market environment. Governance incorporates or economy has a significant effect on their performance.

· Competitive Market: US is the most competitive economy in the world. It is also the most productive economy in the world. It is the largest exported of goods and services. However, to retain its place in the list of economies, US and UK maintain the competitiveness of market.

· Property Rights protection is one of the complex issues in US and UK as well. Restrictions on property rights is considered to be detrimental to society and hence a system of strong private property right is preferred.

· Corruption distorts competition and makes economic development difficult. US and the UK are not very fond of corruption.

6. Determine whether your company is a producer of goods or services. What are the major products and/ or services provided by your company? Are those outputs sold only domestically or are they also exported?

Apple Company is a producer of both goods and services.

Their main products include; iPhone, iPad, Apple TV, iPod, Air Pods, Apple Watch, MacBook Laptops and Desktop Computers.

Their main services include; iCloud, Apple Music iTunes Store and Apple Store.

All of these products and services are both sold domestically and internationally.

7. Do these products and services face tariff or non-tariff barriers in the target export markets? What are the tariff rates or non-tariff barriers imposed on these items?

It is generally seen that Apple products are costly in the market of the country where they are exported as compared to their rates in the United States. This is because of the imposition of import taxes on Apple products in the target export market. tariffs are being levied on the imported products and it also includes Apple products. Import quotas not levied in many countries.

China

This is the country where there is minimal transparency hence it acts as an obstacle to Apple Company to market its products and services. The US implements 25% tariffs on another $200 billions of Chinese imports. Nineteen Apple products face tariffs, including several peripheral like mice, trackpads and cables. But these products only make up a small portion of Apple’s revenue. The tariff rate will rise to 30% on Oct. 1.

United Kingdom

Apple Company does not have numerous barriers in the UK markets due to the fact that there is free trade between EU and USA. Nevertheless, the only tariff might be on the international telecommunication tariffs that are common to all the three countries.

8. Identify regional trading blocs with which your chosen company operates as well as the benefits that your company gains because it is part of those trading blocs.

There are five major advantages of trade bloc agreements that are beneficial for the Apple Company. These trade blocs include; increased foreign direct investment, economies of scale, competition, trade effects, and improved market efficiency.

9. Would your company be better off under a system of multilateral trade liberalization like the WTO, or with bilateral or regional trading blocs?

Multilateral trade agreements are commerce treaties between three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export. Since China and the United Kingdom’s accession to the WTO dated many years back, practically all significant economies have become members, creating a single integrated system of global trade rules. Then there is the downside to size being one of the weaknesses of the WTO. Having so many members makes the consensus difficult to forge

10. If you were visiting a foreign country to negotiate a transaction on behalf of this company, what cultural knowledge would you need to gain before the visit? How and from where would you get the information?

It is very imperative to have the cultural knowledge of the country before planning the visit. The US embassy and US Commercial Service can be contacted for seeking help. As they provide the acquaintance of market intelligence, regulatory issues, and business practices. This could help to alleviate any cultural barriers that may exist between myself and the receiver of my message.

For example, if I were going to China, I would avoid bring gifts, as this act is considered bribery, which is illegal in the country.

References

92% of Apple products made in China could face tariffs by year's end. (n.d.). Retrieved from https://graphics.reuters.com/USA-TRADE-APPLE/0100B25R11Y/index.html

Amadeo, K. (2019, July 10). 3 Ways the IMF Protects the Global Economy. Retrieved from https://www.thebalance.com/what-is-the-imf-its-role-and-functions-3306115#members

Business Culture and Etiquette in China. (n.d.). Retrieved from https://www.todaytranslations.com/consultancy-services/business-culture-and-etiquette/doing-business-in-china/

IMF Country Information. (n.d.). Retrieved from https://www.imf.org/en/Countries

Judicial system of China. (2019, September 10). Retrieved from https://en.m.wikipedia.org/wiki/Judicial_system_of_China

Member states of the World Trade Organization. (2019, September 10). Retrieved from https://en.wikipedia.org/wiki/Member_states_of_the_World_Trade_Organization

World Bank. (2019, September 11). Retrieved from https://en.wikipedia.org/wiki/World_Bank#Members