3.2.1.3 continued TNCs

Question 1

what is a TNC

Answer 1

a company that operates in two or more countries

Question 2

in 2013, how much of global trade was linked to TNCs

Answer 2

80%

Question 3

how can TNCs promote culture and adapt to them

Answer 3

glocalisation

Question 4

how do TNCs have political influence

Answer 4

they provide potential investment
creation of jobs
provision of technology

Question 5

why are TNCs a driving force of globalisation

Answer 5

due to the economic, social and environmental interactions they have in the countries they operate in

Question 6

how does spatial organisation connect countries together

Answer 6

they create a global supply chain as the different sectors of their business are indifferent countries

Question 7

why can TNCs take advantage of global marketing

Answer 7

as they have the money to fund advertising campaigns and large marketing departments

Question 8

what does global marketing allow TNCs to do

Answer 8

adjust marketing to different cultures e.g. the McSpicy Paneer burger in India

Question 9

what is the aim of TNCs global marketing

Answer 9

create an internationally recognised brand e.g. coca cola

Question 10

facts about Apple

Answer 10

innovators of stylish, well designed products with the latest technology
employs nearly 100,000 full time positions

Question 11

how much of Apple’s market share is in the US

Answer 11

44%

Question 12

how many consumers of Apple are there in China

Answer 12

600 million

Question 13

what is Apple’s spatial organisation

Answer 13

HQ and research and development : Silicon Valley
overseas HQ in Cork, Ireland
Manufacturing : outsourced to Foxconn in China
retailing in 16 countries

Question 14

how many retail stores do apple have

Answer 14

450+

Question 15

economic impacts of Apple on its host countries

Answer 15

+ 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

Question 16

social impacts of Apple on its host countries

Answer 16

• poor working conditions and exploitation of working hours due to weak health and safety regulation in China and Foxconn company

Question 17

what action has Apple taken to reduce its negative social impacts

Answer 17

made a supplier code of conduct

regular audit visits to factories

Question 18

environmental impacts of Apple on its host countries

Answer 18

• polluting water
• using non renewable resources of energy
• high carbon footprint of trade

Question 19

what action has Apple taken to reduce its negative environmental impacts

Answer 19

introduce using solar energy

‘How Green is my Apple’ green electronics guide

Question 20

evidence of success for Apple’s environmental action

Answer 20

moved from 11th to 6th on the Green Electronics ranking

Question 21

overall conclusion of Apple’s impact of it’s host countries

Answer 21

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