Question

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.

Answer 1

Ans to Q1: d. the United States and other countries cannot duplicate these incentives

This is exception to what was said in article as this particular question is about support that Fox Conn’s Zhengzhou production receives from China and not that what is impossible for US and other country to duplicate.