Contemporary issues explored through news articles

¶ … security issues created by a selected organization and second important issue is linked to the economics and rising costs of trade in second era of globalization.

Security Issues and Apple Inc.

An important news article published online by New York Times has mentioned an irresponsible act being committed by Apple Inc. that has, to date, cost many human lives. The article has mentioned that Foxconn is the main supplier for Apple Inc., which yet has not signed any official contract with Apple Inc. For being a long time supplier. Foxconn is known to be one of the best manufacturers and electric equipment assembler. Renowned companies for which Foxconn has been working as a supplier include Dell and HP. The article has mentioned that Foxconn and Apple Inc. are well-known organizations and yet these are involved in ignoring the rights of the workers/labor working at the Foxconn factories assembling and cleaning Apple Inc.'s iPads and iPhones. Based on the ignorance of the organizations at both ends, the article has mentioned that there have been two blasts in the factory causing the deaths of many workers at the factory (Duhigg, and Barboza, 2012). The article has reported ignorance of the worker rights from the end of both organizations. Both organizations have emphasized on the importance of the rights of the workers and the employees working in the factory. Apple Inc. has mentioned in their reports that the workers are to be provided complete security and comfort as they work in the factories and all rights of the employees will be taken care off. On the other hand, Foxconn has also mentioned that the workers will be given the proper market-based wages and complete rights. Nevertheless, the reality is on the contrary. Foxconn has been reported to give less than minimum of wage to the workers. Workers who work overtime in the factory are not given any extra wages. On the other hand, recently more flammable and hazardous chemicals have been added in the list of chemicals that are used to clean the iPads and iPhones. Initially alcohol was being used, which now has been replaced by n-hexane which is highly flammable and hazardous. The reason of using n-hexane is that more iPhones and iPads can be cleaned in one day thereby increasing productivity. These incidences have been reported to Apple Inc. And a number of audits have been conducted by Apple Inc. On the Foxconn factory noticing the worker rights violation on the spot. However, the issues noticed in the factory of Foxconn have not been given any consideration by Apple Inc. two main reasons have been highlighted in this regard. First, finding a supplier in these days is a headache based on which Apple Inc. will not risk finding a new supplier if Foxconn is given up based on the worker right violations. Second, Apple Inc. is more concerned about the profits that it can gain when hundreds or thousands of iPhones and iPads are cleaned and properly assembled every day. When revenues and profits are being made by apple Inc. In rates higher than the expectation based on the performance of Foxconn, Apple Inc. will not take any chances of offending Foxconn by mentioning the worker rights violations being committed.

The security issue highlighted by the article is based on the use of hazardous chemicals on the cleaning floors. Aluminum dust has been causing great health concerns for the workers, based on which deaths has been the output of such an irresponsible behavior from Foxconn and Apple Inc. An important message is being given out to two most well-known organizations in the world in relation to violations of the rights of the workers. The customers in the modern days are more concerned about the policies being followed in the organizations rather the new designs being introduced by the companies. There is no doubt about the fact that the products being introduced by Apple Inc. are the main source of its revenues. But there is a need that the success of the products is followed by satisfied and committed workers rather the workers whose life is in danger as they clean and process the iPads and iPhones.

Globalization and International Trade

The second chosen article has been taken from a journal of trade. The article "Transportation Costs and International Trade in the Second Era of Globalization" written by David Hummels has mentioned the importance of trade in the modern days (Weiss, 2010, p. 65). Globalization has important impacts on the economy of the countries but these days, trade has become more costly. Based on an increase in the fuel prices, there has been a great increase in transportation prices. The article has mentioned that more than 23% of the goods move between countries that are joined by land-based borders (Durdu, Mendoza, and International Monetary Fund. Research Dept, 2006, p. 78). Ocean and air modes are used for the transport of goods between countries. The article has highlighted the fact that air shipping and transport has been ignored and underestimated by the trade councils as most of the focus has been given to the ocean-based transportation. Since the last few years, it has been seen that the cost of air-based transportation has greatly decreased and has become more affordable as compared to the ocean-based transportation. The article has mentioned that since 1995, there has been a great decrease in the costs of air transportation of goods. Many facts have been highlighted by the article. The main aim of the article is to mention the issues being faced by the global trade. A cost of transportation is the main issue and there is a need that the issue is resolved by finding alternatives to more costly options as ocean transportation.