Case Study Notes

Case Study Notes - C ase Study Notes Chapter 1 Global...

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Case Study Notes Chapter 1 Global production and the iPod (nano) Central microchip provided by the USA company PortalPlayer o Licensed from British firm ARM Modified by PortalPlayer’s programmers in CA, WA, and Hyderabed PortalPlayer works with microchip design companies in CA and sends the finished design to a “foundry” in Taiwan that makes “wafers” imprinted with thousands of chips o Capital costs of these foundries $2.5 million + Wafers cut up and sent elsewhere in Taiwan where they are tested o Encased in plastic and readied for assembly by Silicon-Ware in Taiwan and Amkor in S Korea o Finished microchip – warehoused in Hong Kong o Transported to mainland China to be assembled Working conditions and wages in China are low relative to Western standards and levels o Live in dormitories o Work long hours o Overtime is compulsory o Wages are higher than elsewhere in the region PortalPlayer’s CEO argued that outsourcing to countries such as India and Taiwan of “non critical aspects of your business” has been crucial to the development of the firm and its innovation
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Since 2003 – Apple shares have gone from $6 to $60 o Those who own shares of Apple have benefited from the globalization of the iPod Security and violence in global politics “New wars” – complex irregular warfare in the global South o Primarily located in weak states and rooted in identity politics, local conflicts, and rivalries o Involve complex irregular warfare between military, para-military, criminal, and private forces through, around, and across state borders with little discrimination between civilians and combatants o Bosnia, Darfur, and Venezuela – modern since they are sustained largely by the capacity of combatants to exploit global networks to provide finance, arms, émigré support, or aid as well as to facilitate profiteering,
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Case Study Notes - C ase Study Notes Chapter 1 Global...

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