Question

name a U.S. firm confronting the negative consequences of tariffs from the U.S.-China trade war. In your discussion of the first article, you must explain the strategies employed by the firm to manage the negative effects of trade tariffs

Answer 1

Answer: Apple Inc. USA

The strategies employed by Apple to manage the negative effects of trade tariffs are as follows:

1. Employment Provider :With millions of jobs created in China by Apple and its contract Manufacturers like (Foxconn and other suppliers), any crackdown on its goods will have a negative effect on the local economy of China

2. Lobbying By Apple : The ability of Apple Inc and its CEO Tim cook for lobbying will certainly reduce impact of trade war on Apple products.

3. Loyal Customers: As apple is famous for innovative & cutting edge tech products , the technology-driven generation will be accepting apple products even if they become more expensive after trade war.

4. Less Elastic : The apple would pass increased taxes directly to consumers as there products are premium and less susceptible to increase in prices.

5. Production capacity Outside china: Apple has enough production capacity outside china to sustain supply even if things goes wrong to extreme level in china.