The cost of producing an I-Phone in China is a fraction of what it is in the U.S. This is partly down to cheap labor costs in China vis-a-vis the United States. Huge incentives and subsidies are also directed at technology companies from the Chinese government. The government should similarly offer tax breaks to Apple and other technology companies to ship jobs back to the U.S (Pisano & Wily 8). This will ensure Apple remains competitive even while manufacturing in the U.S. If this happens, jobs shall be created in the shipping industry deriving from the increased movement of parts and raw materials from China to the U.S. The disadvantage in this move is that the government will forego large amounts of revenue from a company that already rakes in a fortune in terms of revenue. However, as its increasingly becoming apparent, costs are not the sole motivator behind Apples decision to relocate to China. A poorly skilled workforce in the United States is also to blame.
The immediate solution to this is upgrading workers skills. This is best done through employee training programs by the government. However, this does not to suggest that American workers are totally deficient of skills in demand. instead, they need to fine-tune their technical or mid-level skills. Majority of Americans are armed with first-rate qualifications, but the technical side of their training can not live up to the demands of a global company of Apple’s size. Even if, they had the necessary qualifications, the company would not obtain them in the numbers required. This deficiency could be plugged by relaxing visa rules to allow easier entry of Chinese, or other equally skilled workers to take up the extra jobs (Pisano & Wily 9). Even when that is done, a more flexible workforce will be required. Up scaling happens at extremely short notice. thus, it would be difficult to achieve that considering the fact people are only familiar with nine to five jobs, in the U.S.