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the iPhone’s color screen, speakers, and circuitry are mined in Africa and China. Plants in Korea and Taiwan produce iPhone memory chips. The gyroscope, which allows users to flip the display, comes from factories in France and Italy. Japanese companies manufacture the cameras and screens. The fingerprint technology, touch ID sensor, and cases are produced in Taiwan (a country that is also known as Chinese Taipei). Yet Apple uses US suppliers, too. A plant in Austin, Texas manu- factures semiconductors. The glass screen is made by a Kentucky com- pany. And an Arizona firm produces screen covers. Companies in New York, Colorado, and California make the phone’s computer chips. Most of these parts are shipped to China. Chinese workers assem- ble 85 percent of all iPhones. In 2014, Apple’s two top suppliers each made 25 million iPhone 6s. Apple chooses Asia for the majority of iPhone production because of this capacity for high output. The com- pany also prefers the quick response of Asian companies when Apple

Words to Understand in This Chapter

consumer— a person who buys goods and services. export— a product or service from one country that is sold in another country. global supply chain— the processes used to produce and distribute a product or service around the world. globalization— the system of international connections among workers, investors, products, and consumers. gross domestic product (GDP)— the total value of goods and services produced in a nation. transportation— the act of moving things and people from one place to another.

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Global Trade in the Modern World