Apple and Shell TNCs (GSGG)

Question 1

Apple - CONTEXT

Answer 1

• HQ = California, USA.
  Organisations:
• research + development = California.
• sales = Ireland.
• manufacturing = China.

Question 2

Apple - WHY MANUFACTURE IN CHINA?

Answer 2

• lower wages.
• cheap land.
• avoid trade restrictions.

Question 3

Apple - CRITICISMS

Answer 3

• poor working conditions = 2010, 14 people committed suicide.
• some work 36 hours without a break.
• low wages = $100 per month.
• some poisoned from chemicals used to clean screens.

Question 4

Apple - IMPORTANCE

Answer 4

• high employment = 18,000 directly and over 1 million in supply + distribution.
• 2014 = sold 74.5 million iPhones > £11.8 million in profits.
• has highly skilled workers.
• fluid, simple to use, detailed website = allows them to reach all over the world.

Question 5

Shell - CONTEXT

Answer 5

• European based country = split between Netherlands (Headquarters) and Royal Dutch Sell in the UK.
• operates in 140 countries providing 20 million customers with gas + power everyday.

Question 6

Shell - 3 MAJOR AREAS

Answer 6

• Upstream = explores for + extracts crude oil/natural gas.
• Downstream = Refines supplies, trades, manufacturing, marketing and produces petrochemicals for industrial customers.
• Projects and Technology = manages Shells projects and drives research to create technology solutions.

Question 7

Shell - POSITIVE IMPACTS

Answer 7

Environmental:
- aim to be a net-zero emissions energy business by 2050.
- covers geothermal, solar + wind energy as part of renewable energy program.

Human:
- paid £20 billion in corporation tax (2013) = can be used by governments of countries they operate in for education, healthcare + services.

Question 8

Shell - NEGATIVE IMPACTS

Answer 8

Environmental:
- 9 billion barrel worth of oil spills since 1958 = damages Niger Delta environment + fisheries.
- do illegal gas flaring = air pollution.

Human:
- can exploit low wage economy and avoid paying full tax.
- Bodo community, Nigeria 2011 = destroys 1000 hectares of mangroves and all marine wildlife which the community survived on > 3 years later, Shell did not clean up the oil spill, only providing food for compensation.