M2: Apple
Compare the challenges to selected businesses activities within a selected organization, in two
economic environments.
For this assignment I will compare the challenges to selected business activities within my chosen
business in two different economic environments. The business I am going to use for this assignment
is Apple. Apple is a global company headquarted California. The two economic environments that I
am going to use are the US and China.
Factor US China
Population 325,256,991 in November 2017 1.359.000.000 in November 2017
Average Salary $859 weekly in August 2017 $278 weekly in August 2017
Inflation Rate 2.2% in October 2017 1.9% in October 2017
GDP 18569.10 T in October 2017 11.8 T in August 2017
Interest Rate 1.25% in October 2017 4.35% in October 2017
Unemployed Rate 4.4% in August 2017 3.95 in July 2017
Employment Rate 60.20% in November 2017 71.6% in November
If Apple decides to expand in China they will have to face a higher interest rate, for example if Apple
needs to invest in their Apple Store in West Lake they will need the Chinese currency (Yuan) to pay
for the costs as if they do this in America they will have less costs because they interest rate is lower
in America compared to China. Apple can also have benefits if they operate from China because the
inflation rate is lower in China compared to the US. This means that the prices of products in China
are stable in the US Apple will need to increase the prices of their products if they don`t do this they
will loss profit and if they increase the prices of their products they will lose their customers to their
competitors. Another benefit for Apple if they operate from China is that they average salary is lower
this means that Apple can save money from employee wages if they operate from China the money
they save from the wages they can invest in expanding.
Compare the challenges to selected businesses activities within a selected organization, in two
economic environments.
For this assignment I will compare the challenges to selected business activities within my chosen
business in two different economic environments. The business I am going to use for this assignment
is Apple. Apple is a global company headquarted California. The two economic environments that I
am going to use are the US and China.
Factor US China
Population 325,256,991 in November 2017 1.359.000.000 in November 2017
Average Salary $859 weekly in August 2017 $278 weekly in August 2017
Inflation Rate 2.2% in October 2017 1.9% in October 2017
GDP 18569.10 T in October 2017 11.8 T in August 2017
Interest Rate 1.25% in October 2017 4.35% in October 2017
Unemployed Rate 4.4% in August 2017 3.95 in July 2017
Employment Rate 60.20% in November 2017 71.6% in November
If Apple decides to expand in China they will have to face a higher interest rate, for example if Apple
needs to invest in their Apple Store in West Lake they will need the Chinese currency (Yuan) to pay
for the costs as if they do this in America they will have less costs because they interest rate is lower
in America compared to China. Apple can also have benefits if they operate from China because the
inflation rate is lower in China compared to the US. This means that the prices of products in China
are stable in the US Apple will need to increase the prices of their products if they don`t do this they
will loss profit and if they increase the prices of their products they will lose their customers to their
competitors. Another benefit for Apple if they operate from China is that they average salary is lower
this means that Apple can save money from employee wages if they operate from China the money
they save from the wages they can invest in expanding.
