Sometimes programs that are meant to help the economy affect

Sometimes programs that are meant to help the economy affect private investment, and thus the economy as a whole. In a short clip from the film Shawshank Redemption, a private investor approaches the warden and a conversation follows. Please watch the short scene at 01:18:06-01;20:01 and discuss the following. 1. What economic theories are being displayed here? Explain the economic theories and how they apply. Articulate any technical definitions and how this scene or situation applies to the material we have discussed in the book recently. You may find it on any media source available. Please be aware this movie may have mature content as a whole. If you are not able to find and watch this portion of the movie, for whatever reason, please let me know and I will provide you a set of traditional questions to test this area.

Solution

The Apple industry relies on high-skilled labor since all of its products are technology based. While the workers in US are incredibly high-skilled, there are a few areas in which low-skilled labor is used by Apple - like assembling parts, etc. The low-skilled labor is from Asian countries like China.

Being a technological based company, Apple spends more money on capital (machines, raw material, software, advertising, packaging, etc.) than on its workers.

For Apple, globalization and outsourcing have played a major role. Most of Apple\'s production takes place in Aisa. It takes advantage of US technological advances and Aisa\'s cheaper labor to manufacture and assemble its products. This has helped the company to grow manifolds.

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