Question: QUESTION 2 (40 MARKS) Where Do Phone Components Come From? WIN Lewire Diagram source: Lifewire The iPhone or Apple is the leading company in the

QUESTION 2 (40 MARKS) Where Do Phone Components

QUESTION 2 (40 MARKS) Where Do Phone Components Come From? WIN Lewire Diagram source: Lifewire The iPhone or Apple is the leading company in the electronic industry. Although the brand is originated from the United States, the production plant is, however, on the other side of the world. This statement is supported by evidence as every iPhone user can see the note at the company's packaging that its products are designed in California but made in China with its components coming from all over the world. Foxconn, a Taiwanese Company, won the Apple manufacturing contract when Steve Jobs (the founder) decided to launch the IPhone with a glass screen instead of plastic, six weeks prior to the iPhone release. a) Name and discuss the theory of Foreign Direct Investment that applied with the scenario above using the iPhone as an example. (13 marks) b) Based on the diagram above, IPhone components are sourced from many countries. Describe the concept and articulate the reason for Apple applying the concept above. (7 marks) c) On May 2021, Foxconn announced its plan on relocating 10% of its Chinese manufacturing to be relocated to India as they participate in Performance- linked incentive (PLI) scheme, which offers cash-back to manufacturers for exports, will have a budget of up to 70 billion rupees ($964.5 million) over five years provided by India Government (Source: Nikkei Asia and Reuters). Based on your understanding, describe the incentives methods offered by the India Government and the reasons why India Government offers such incentives. (13 marks) d) Explain why a government that is interested in job protection insists on local content requirements for international firms doing business in that country. (7 marks)

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