In
the article by David Barboza, How China Built ‘iPhone, NY Times,
December 29, 2016, Foxconn’s Zhengzhou production receives many
supports from China. These supports include all the following,
except
a. The Zhengzhou government lowered Foxconn’s social insurance
and other payments for workers, by up to $100 million a year.
b. Those subsidies, totaled $56 million in the first two years
of production, when the factory was exclusively dedicated to the
iPhone, according to the government records.
c. The Zhengzhou government eliminated corporate taxes and
value-added taxes that Foxconn pays for the first five years of
production; they are half the usual rate for the next five.
d. the United States and other countries cannot duplicate
these incentives.
e. Foxconn receives a bonus when it meets targets for
exports.
In the article by David Barboza, How China Built ‘iPhone, NY
Times, December 29, 2016, in order to sell Apple’s iPhones to the
Chinese consumers directly, the following happened in China:
a. In discussions with Zhengzhou officials, Apple insisted
that the operation be located inside a bonded zone, equipped with
customs right at the factory gate to facilitate iPhone
exports.
b. By the time Apple released the iPhone in 2007, China faced
growing pressure to loosen its restrictions and give global
companies easier access to its market, and Apple and other
companies proved to the Chinese government that they wasted their
time, energy the make this U-turn, and the Chinese governments paid
extra for the costs of this U-turn operations.
c. The bonded zone requires foreign companies to pay duties or
taxes on imported components.
d. In those bonded zones, products can be imported and
exported virtually at customs, without crossing a single border,
and after that, they can move swiftly around the country, or out to
the rest of the world.
e. A bonded zone for Apple’s contract manufacturer Foxconn
functions much like a diplomatic territory, in that the government
regards it as domestic soil.
In the article by David Barboza, An iPhone’s Journey, From the
Factory Floor to the Retail Store, NY Times, December 29, 2016, how
do the finished iPhones pass through customs?
a. As the final point of assembly for the iPhone, China also
serves as a starting point for Foxconn’s global tax strategy.
b. The newly assembled iPhone is transported a few hundred
yards beyond the factory gate, where China built a large customs
facility to collect duties. The process, most of which takes place
electronically, allows Apple to assign a portion of its profits to
an affiliate in Northern Ireland of UK, a tax-advantageous
locale.
c. The customs operation sits in a so-called golden zone,
which allows Apple to sell the iPhones more easily to consumers
around the world.
d. A government customs facility sits just inside the Foxconn
factory.
e. In Zhengzhou, often in the customs facility, Apple buys the
completed iPhones from Foxconn, then resells them to Apple
affiliates around the world.
In the article by Susan Berfield, Domino’s: Delivering a $9
Billion Empire, BloombergBusinessweek, Mar 15, 2017, Domino
understands the flip side of pizza delivery, according to Maloney
and Garcia, and believes the company can use drone to deliver its
pizza, however, there are some problems, restrictions, and unknown
issues. Which of the following is correct about these issues
described?
a. In the New Zealand town of Whangaparaoa, Domino uses drones
to delivery pizza within a mile from the store, and the customers
need a backyard so drones can land safely.
b. Customers in New York City can have his/her order delivered
to their backyards.
c. The drone operations regulations in the U.S. are yet to be
drafted, so everyone can try it.
d. Using drone for delivering pizza is more economical.
e. The Federal Aviation Administration in 2016 rules drones
have to remain within the visibility range where operators
are.
In the article by David Barboza, An iPhone’s Journey, From the
Factory Floor to the Retail Store, NY Times, December 29, 2016, the
components for iPhone are source through which of the following
ways?
a. Apple orders many of the components from global suppliers,
and then passes them, en masse, to Foxconn, one of its contract
manufacturers based in Taiwan.
b. More than 200 components from more than 200 suppliers in
China go into each iPhone.
c. Foxconn buys all of the components for iPhones from all
over the world.
d. These components, i.e. the memory chip, the modem, the
camera module, the microphone and the touch-screen controller, are
from more than 200 suppliers around the world.
e. Foxconn, the Taiwanese company that runs the Zhengzhou
facility, produces majority of the smaller parts, such as metal
casings, and memory chips.