APPLE CASE STUDY

Question 1

What is a TNC

Answer 1

• Trans national corporations are companies that operate in at least two countries.

Question 2

Why do TNCs operate in more than one country

Answer 2

• To escape trade tariffs
• To find low lost locations for production
• To reach foreign markets

Question 3

Apple background

Answer 3

• Tech corporation
• Second largest IT company by revenue
• Number 1 global brand by value
• 98,000 employees
• 16 countries and 450 retail stores

Question 4

Spatial organisation of Apple

Answer 4

• Products are deisgned in silicon vallye california.
• Made and manafactured in China through Taiwan based company Foxconn.
• Most apple employees are based in the developed world.

Question 5

Apple - production

Answer 5

Apples mainstream products are produced in China
- A large number of highly skilled, har working but low paid jobs.
- Low costs
- 400,000 workers in foxconn city

Question 6

Imapcts on the Ireland

Answer 6

• Apples european HQ is based here.
• Based on the north side of Cork.
• Provides 4,000 workers directly on its imac production line.
• Precense in Cork has generated 2,500 more jobs as part of the supply chain.
• Attracted other high tech firms to the areas.

BUT
- Accused of not creating sufficient work for locals, as many workers here are foreign nationals.

Question 7

Imapcts on China

Answer 7

• Working conditions, in 2006 it was reported that 200,000 workers who lived in shenzen factory were working 60 hours a week for 100 dollars a month.
• Health and safety, in 2010 50 workers in a subcontracted foxconn manafacturer were posined by a toxic chemcial used to clean ipad screens.
• Student and child labour, workers under the age of 18 are subjected to the same conditions as adults.
• Suicides, 2009-10 suicides damaged the reputation of apple, by the end of 2010 14 suicideds have occured

Question 8

Impact on the enviroment

Answer 8

• Reliance on non-renewables to supplu electrcity to its data centers
• Use of toxic chemicals
• Local factories in china were discharging pollutants and toxic metals into local water supplies and thretening public health.