TNC - APPLE

Question 1

Background

Answer 1

Founded 1976 in USA

HQ in California

Computer electronics producer

Main competition is Microsoft and Samsung

Consistently top 2 brands globally by value

Question 2

HQ and Employees

Answer 2

98,000 employees

Mainly based in HICs (USA)

HQ in California

European HQ in Ireland

Question 3

R&D

Answer 3

Main site in California

Many high tech industries are in California

Information exchange between companies and industries can take place

Access to well qualified expert staff

Question 4

Production

Answer 4

China - high skilled, hard working, low paid

Production costs forced down due to high completion for Apples manufacturing contract

Main site is Foxconn city business park
$100-200 monthly - above minimum wage
High security
Workers live on site

Question 5

Impact on Ireland

Answer 5

4000 employees
Apples investment lead to investment in infrastructure- 2500 more jobs
Mix of high and low skilled jobs
iMac is manufactured in Ireland reducing shipping costs if it was from China

Apple was attracted due to low tax 12.5%
Most high skill jobs taken up by internationals - accused of not enough sufficient work for locals

Question 6

Impact on China

Answer 6

Over 200,000 workers at Foxconn work 60hours a week for as little as $100 a month
Sweatshop like working conditions
50 deaths in 2010 due to toxic chemicals used in production
14 suicides due to conditions
Student and child labour

Created strong trade relations with HICs such as USA

Question 7

Environmental impact

Answer 7

Criticised on 4 counts:
Reliance on non-renewable energy sources
Use of toxic chemicals
Discharge of pollutants from factories
Lack of recyclability of products

Apples response:
Now 75% renewable energy sources
Removal of toxic chemicals from production
Promoting recycling products