Question

Analyze the economic environment of the 3 countries where Apple company does business in terms of

first and second-order economic indicators, economic system (market friendliness, the role of the state), and economic freedom.

How devastating are the (socio)economic effects of the pandemic in these countries? How does it affect Apple company´s sales/operations?

Answer 1

Today we are passing through the most pathetic situations of our lives. Poverty and hunger is the main things which affect the entire economy and simply a person. Because of this global pandemic, people were fall down in the bad situation than before. It is not in a particular country, it duly affects the world as a whole. 2020 is the worst year we have ever faced. The whole world is watching how all the countries across the economic freedom were facing this global pandemic. The index of economic freedom helps us to learn about more prosperous economic, better health care, abundance of food and clean water and finally higher quality of life. If this pandemic teaches anything to survive is also leads to economic freedom.

            All countries are started to survive and recreate their economy by making accurate policy and implementation of the same. By the implementation of staying at home, the economy may goes to recession and these economic restrictions will recover the economy by this summer. But this out break leads to many business firms to close the doors because of absent revenue. In some industries revenue were fallen shortly.

            This global pandemic also affected the supply and demand in the economy. All the countries were shut the industries and business due to less supply and lack of raw materials. And also the demand side is falling downwards as the recession in 2008. Because price decrease the investors also get less return. This global pandemic was badly affected the economic system, indicators and economic freedom negatively. It also leads to reduce in supply and demand. Some people were shut their business due to less return.

Supply is the main problem which duly affected the businesses Apple Co. Their main raw materials are collecting from the country China. China were closed all the outlets of Apple Co. and they less the supply of the products. Due to this the demand curve was fallen downwards. For making iPhones, the Apple co. is mainly depended on the people in China. Because of limited response from the Chinese people, the supply of iPhones was also fallen downwardly. Chinese people were closed their outlet because of this pandemic. At the time of reopening of those stores in China, it will help the Apple co. to attain the supply curve and demand curve normal. But there is a small problem, that is, when the supply is normal they cannot increase the return because all people were suffering this pandemic. It will badly affect the company as a whole. Their shares were transferred with the rate less than 3.2% in previous period. And the virus attack were lasting for few months, it will badly affect the Apple co. large companies were started to shut their outlets due to this. And also Apple may voluntarily close the doors in future due to his pandemic. COVID-19 badly affects the entire economy as whole. In the same way Apple co. all companies will shut the outlet as it will stay in world for more days. It will also affect the supply and demand of the product. It will reduce the financial return of the company too.