Do Not Topple The Global Economy Mr Trump

Do Not Topple The Global Economy Mr Trump


Vivek Sood




October 15, 2020

I have nothing against you President Trump. I have nothing for you either.

But, when I heard of the directive to manufacture  iPhones in USA, I had to write this post.

This is one of the weakest ideas I have heard from Supply Chain point of view, and I am not indulging in a political debate.

I am merely pointing out what even a supply chain new comer will tell you – with the current global configuration of supply network of companies such as Apple, any meaningful change of this nature will be impossible to achieve.


Because, Apple supply chain has been extensively studied and documented. One of the better reports (though a bit dated) is located at this link and I am sourcing a few relevant data below from this report. For example, take a look at the following table showing key supply chain activity location sourced from (

It is clear almost all the activities happen in the Far-East.  Now take a look at another table, also sourced from the same report (

Global Supply Chain Group

By Peacefulmovements [CC BY-SA 3.0 (], from Wikimedia Commons

None of this is news, even to neophytes in the game of business. To unravel and roll back supply chain globalisation achieved over decades will be near impossible, even for the most determined politician.

Global economy is delicately perched, and precariously balanced. It is also top heavy – just like the picture.

It does not matter how we got here.

It does not even matter which stone represents whom – bankers, politicians, business people, academics, common man – we are all going to fall in a heap together if a massive re-balancing of the stones is attempted at this juncture.

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  1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.
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Vivek Sood

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

  • What are the five flows of SCM?
  • Why are they important TO YOU?
  • How can you map, track, and optimise these flows to serve YOU?
  • What is the importance of difference between "Supply Chain" and "Value Chain"?
  • What are the stellar case studies of each of the five flows?


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  • In today’s news Ray Dalio is quoted as sayinh
    “I see significant other problems ahead in two or three years,” Dalio said, “because of the combined effects of debt, pension and health-care burdens, the wealth and opportunity gap that create polarity and populism, and less effectiveness of central-bank policies that makes it more difficult to reverse a downturn.”

    • Sharp comment Globlist – fits with the context but I have to say that no one, not even Ray Dalio has the magic crystal ball. Sure – the logic dictates that you cannot keep running an economy on deficit, debt and currency manipulation. Eventually, the fundamentals will catch up with the economy. Whether it happens in 2 years or 2 months, or even 20 years is anyone’s guess. My point is different – it can happen a lot sooner if the President tries to unravel the complex global supply chains.

  • It may be effect global economy as Mr. Trump has a president of it.
    Read this Today’s Political Scene Poses Long-Term Risks:
    On January 11, the World Economic Forum released its annual assessment of global risks in the coming decade. The top two challenges that face the world are rising inequality and social polarization — topics that certainly affected the world in 2016 and will continue to have an effect on European elections and markets in 2017.

    “The WEF said that the share of income going to the top 1 percent of earners has increased in countries including the U.S., Britain, Australia, and Canada since the 1980s,” Alex Morales writes at Bloomberg. “The policy of quantitative easing, whereby central banks make large-scale purchases of government bonds, has exacerbated inequality by enriching owners of financial assets.”

    No one knows exactly what a Trump presidency will do to the American economy, the global markets, and international relations. While there are reasons to be optimistic, even Trump’s biggest political and financial supports are approaching him with caution. No one seems willing to jump onboard until his bounty of words turns into actions. (

  • That scenario appears more like the one President Donald Trump finds himself stuck in after Canada started collecting duties on a variety of U.S. products on Sunday, including orange juice, yogurt, and whiskey. The Canadians will be reinforced by Mexico and China later this week in responding to the Trump administration’s tariffs when the two countries take aim at the U.S. pork and soybean industries.

    • A full-blown trade war would punch a hole in global economic growth because of reduced trade volume, supply chain disruptions, and lost confidence.

  • Made-in-USA iPhones have come up before, most notably when President Barack Obama asked then CEO Steve Jobs the same question during a private dinner in Silicon Valley in 2011. Turns out, Apple has already considered the possibility, but concluded that it’s not a viable option. President Donald Trump now concedes that some Apple Inc. products may become more expensive if his administration imposes massive additional tariffs on Chinese-made goods, but he articulates that the tech company can fix the problem by moving production to the U.S.

  • If Apple were to assemble iPhones in the US, it would create huge logistical challenges. An iPhone is actually an assembly of hundreds of different individual components, such as chips, batteries, camera modules, and other tiny bits. Ninety percent of these parts are manufactured outside of the US, and the vast majority of these components are made in East Asia. For example, if one supplier didn’t work out, and Apple had to wait weeks for a replacement to ship to the US from China, then that could push a launch date back by weeks.

  • As manufacturing has moved out of the US, Chinese workers have become better trained in manufacturing skills than American workers. Chinese factories are generally more nimble than American ones. For example, most supplier employees live in dorms close to the factory, so if there’s a last-minute change, work can begin immediately, even in the dead of night. That kind of factory life might appear excessive and problematic to some, but it’s a reality of a global supply chain that Apple lives in.

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