3.2.1.3 continued TNCs Flashcards
what is a TNC
a company that operates in two or more countries
in 2013, how much of global trade was linked to TNCs
80%
how can TNCs promote culture and adapt to them
glocalisation
how do TNCs have political influence
they provide potential investment
creation of jobs
provision of technology
why are TNCs a driving force of globalisation
due to the economic, social and environmental interactions they have in the countries they operate in
how does spatial organisation connect countries together
they create a global supply chain as the different sectors of their business are indifferent countries
why can TNCs take advantage of global marketing
as they have the money to fund advertising campaigns and large marketing departments
what does global marketing allow TNCs to do
adjust marketing to different cultures e.g. the McSpicy Paneer burger in India
what is the aim of TNCs global marketing
create an internationally recognised brand e.g. coca cola
facts about Apple
innovators of stylish, well designed products with the latest technology
employs nearly 100,000 full time positions
how much of Apple’s market share is in the US
44%
how many consumers of Apple are there in China
600 million
what is Apple’s spatial organisation
HQ and research and development : Silicon Valley
overseas HQ in Cork, Ireland
Manufacturing : outsourced to Foxconn in China
retailing in 16 countries
how many retail stores do apple have
450+
economic impacts of Apple on its host countries
+ pays better than chinese minimum wage
- still less than $150 a month
+evidence of upward multiplier effect in Cork as 2500 jobs were created when the new HQ was set up
-many workers in Cork are EU foreign nationals
social impacts of Apple on its host countries
- poor working conditions and exploitation of working hours due to weak health and safety regulation in China and Foxconn company
what action has Apple taken to reduce its negative social impacts
made a supplier code of conduct
regular audit visits to factories
environmental impacts of Apple on its host countries
- polluting water
- using non renewable resources of energy
- high carbon footprint of trade
what action has Apple taken to reduce its negative environmental impacts
introduce using solar energy
‘How Green is my Apple’ green electronics guide
evidence of success for Apple’s environmental action
moved from 11th to 6th on the Green Electronics ranking
overall conclusion of Apple’s impact of it’s host countries
it is not soley a positive or negative force
but there are high social, economic and environmental costs on the labour force, host country and the world
recent actions have made it more positive and hopefully more sustainable in the future
