One day, president Obama was having dinner with the top officials from several big company in California. Everyone had to come up with a question to ask the president. While Steve Jobs was talking, the president interrupted by saying “what would it take to make IPhone in the United States? ”
Today, Apple manufactures 70 million iPhones and 30 million iPads overseas, especially in China. Steve Jobs told the president these jobs aren’t coming back due to the competitive advantages China has over America in the manufacturing industry. Not only is the labor cost cheaper overseas, but also, the culture differences between foreign workers and the United States. Apple relied heavily on the Chinese factory. One time, Apple had to redesign their iPhone a week before the due date . It is nearly impossible to manufacture all the IPhone on time in order to satisfy the customers’ demands. However, the Chinese factory immediately hired more employees and call up 8000 workers within half an hour to work day and night. Since most of the employees work and sleep at the factory, the Chinese factory manufactures about 10000 IPhone a day. It’s something that the American firms can never accomplish since it’s against the law to force your workers to work non-stop in America. If you can lower your cost and increase efficiency, why would people not do it to stick with the American company?
In the recent years, the US has lost about 70 percent of its manufacturing base overseas. There are numerous reasons for that. First, US has one of the highest corporate tax rates throughout the entire world. Second, America has complicated banking and business regulation and high labor cost. The United States cannot compete with countries like China when it comes to manufacturing.