There are several political factors that affect Apple Company. First, nearly all of Apple Company products are manufactured in China (Lusted 2012); therefore, any political instability in China may affect the manufacturing process of its products. This many have a negative effect on the profitability levels of Apple Company as it may not be able to meet the high demand for its products in the different parts of the world. Furthermore, political tensions between the United States and China may spell a doom for the company’s fortunes. This is mainly because China may impose economic sanctions on the United States, which will have an effect on Apple Company. Fundamentally, this could also cause a business delay and there will be logistical problems. Consequently, many consumers will stop purchasing the Apple’s products because it takes a lot of time before reaching them.
Second political factor is Apple Company’s significant interest in lobbying politicians. Primarily, it has become among the few well-known companies that lobby politicians to pass laws that favor them. In the past 15 years, Apple Company has spent a significant amount of money in lobbying politicians, which has led to many people to criticize it for avoiding to pay taxes. Current estimates indicate that the company spent approximately $4 million in lobbying politicians in the United States (Bostic 2013).
Lastly, there is also the aspect of changing government rules and regulations in countries where Apple Company operates (Lashinsky 2012). Some of the countries in which Apple Company sells its products may not be friendly to the United States; therefore, they may consider Apple Company as a proxy target on behalf of the United States. In this case, they can impose hefty taxes and restrictions on the company. It is vital for Apple Company to adhere to all the changing rules and regulations in such countries in order to avoid attracting the attention of the ruling regimes. In conclusion, these key political factors in Apple Company have the potential of negatively affecting the company.
Reference List
Bostic, K. (2013, May 23). Apple on pace to double lobbying spending on taxes, other issues. Retrieved from http://appleinsider.com/articles/13/05/23/apple-on-pace-to-double-lobbying-spending-over-taxes-other-issues
Lashinsky, A. (2012). Inside Apple: how America's most admired-and secretive-company really works. New York, Business Plus
Lüsted, M. A. (2012). Apple: the company and its visionary founder, Steve Jobs. Minneapolis, MN, ABDO Pub.
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