Question

Evaluate the roles and functions of third parties or external resources of Apple Inc,  in the current economic state. How will the tariffs effect Apple? How will lobbyists be involved in the situation? Will there be public affairs professionals who will argue on behalf of the government or the business?

Answer 1

Ans:From time to time the, Apple may provide third parties with some personal information to provide or improve our products and services, including to deliver products at your appeal, or to help Apple market to customers.And when we do, we require those third parties to hold it in accordance with applicable laws.Any personal information will never be shared with third parties for their marketing purposes. For eg;at the time when you purchase and operate your iPhone, you authorize Apple and your carrier to exchange the information you provide during the activation process to carry out service, including information about your device.And if you are officially agreed for service, your account will be governed by Apple and your carrier’s personal privacy policies.

-- Next we can look how the tariffs effect Apple ;Trump made two threatening remark to increase tariffs on Chinese imports, one of which would have strike Apple products. He has now gone ahead with half of what he guarantee and says that work is ongoing on the half that would affect Apple.

The US government formerly had a three-pointed approach to tariffs on products imported from China: a 25% tariff on selected product categories worth 50 Billion dollars; a 10% tariff on another 200 Billion dollars worth; and no tariff on the remaining product categories. Apple products currently fall into the tariff-free group.

And also, Trump said he would this week be making two changes to this.The first, the 10% tariff would be increased to 25%. Second, all tariff-free goods would also be taxed at 25% , which would have hit Apple.

Trump has so far made good tax on goods, All goods that were taxed at 10% are now taxed at 25%, but there has been no change to the tariff-free product categories till now ,Chinese tariff increases still threaten Apple

Apple could also be threaten even before that happens, for two reasons.The first one is the economists have inform that the increased tariffs will hurt the US economy. Industry which import affected goods from China will likely have to pass on some or all of the substantial extra costs to consumers. That means less expendable income for customers, which could affect their ability and for willingness to buy Apple products.

Second one is the  China is likely to find ways to respond. And this will mostly involve increased tariffs on US goods, which will affect American businesses exporting to the country ( farmers mostly at problem), but the Chinese government may also look ways to punish US companies operating within China.

--- And we can how lobbyists be involved in the situation, Apple's pay out on lobbying grew from just over 4 million dollars in 2014 to about $4.5 million in 2015 and 2016, before greatly increasing to 7 million dollars in 2017. In terms of lobbying, this was a evidence on paying amount for the company, and Apple's areas of focus were said to have been encryption and immigration. And the last time Apple's lobbying amount emerged was in July 2017, when it was reported that Apple spent 2.2 million dollars lobbying the government between April 1 and June 30, 2017.

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