Comparative Advantage discussion The economic principles Emily Oster describes for dividing household work become applic

Comparative Advantage discussion

The economic principles Emily Oster describes for dividing household work become applicable to how organizations should distribute tasks for operational efficiency. Apple Inc. demonstrates the practice of comparative advantage by partnering with Foxconn to handle product manufacturing for the company. The company maintains its expertise in areas like design and marketing and organization standards at Foxconn for establishing economical mass production facilities. The fragmented labor system enables Apple to manufacture top-quality goods at optimal prices through faster production rates when compared to keeping production internally. Apple arranges its manufacturing through outsourcing so it can direct its assets toward developing new technology while staying ahead of the competing technology market. (Oster, 2019). 

The implementation of outsourced manufacturing by Apple through PPF analysis brings an outward movement to the PPF allowing greater goods and services creation than Apple would achieve alone. Specialization together with trade enable Apple to grow its operations past their original production limits while enhancing total output levels. A societal advantage emerges because consumers obtain advanced technology at lower prices and specialized service suppliers including Foxconn experience increased customer orders. (Mankiw & Taylor 2020). Trade allows consumers to reach consumption levels that exceed their individual PPFs because of the advantages brought by comparative advantage. The dynamic nature of economic efficiency contributes to worldwide interdependence. This is because companies concentrate on their core expertise to achieve prosperity. 

References

Mankiw, N. G., & Taylor, M. P. (2020). Economics. Cengage Learning EMEA.

Oster, E. (2019). You’re Dividing the Chores Wrong. ParentData.