Final answer:
The concept of comparative advantage is critical for businesses like Pear, looking to enter new markets. Through the lens of Apple Corporation's global production strategy, we see how the United States, China, and Korea each contributes using their respective advantages, which Pear must identify and compete with in India.
Step-by-step explanation:
Understanding Comparative Advantage in Global Business
When discussing the expansion efforts of a mobile phone manufacturer like Pear into new markets such as India, it is crucial to understand the concept of comparative advantage. Let's take Apple Corporation as an example. Apple capitalizes on the comparative advantage by designing and engineering the iPhone in the United States, where resources for high-tech designs are efficiently utilized. Meanwhile, China brings its comparative advantage to the table with its large skilled labor force, which is optimal for assembling the devices. Lastly, Korea contributes its comparative advantage by producing essential components like screens and computer chips. It's this global distribution of tasks that leads to the lowered average costs of production, allowing Apple to offer high-quality products at competitive prices.
This exquisite balance of global production scales and expertise is what Pear would have to confront, as it competes against more economical phone alternatives in the Asian market. Pear will have to identify its comparative advantages that could set it apart in the highly competitive market. Moreover, the fact that Apple's iPhones contain components from their rival, Samsung, illustrates the complex nature of international trade where companies focus on their strengths, despite being competitors.