apple TNC Flashcards
cobalt extraction in DRC
rich cobalt reserves and responsible for more than 70% of its production worldwide. low cost due to poor enforcement of workers’ rights
+ DRC
workers are willing to mine to to comparatively high wages to other employment opportunities
~ DRC
children trafficked to work with money earned funding militia. lose out on education etc. death and injuries common
tin in bolivia
mines in place
cheap labour with 15000 miners
lots of tin
+ BOL
on a good day miners can make $50
- BOL
deaths are common. miners do not have salary but sell what they mine. lack of regulation results in child labour
semiconductor in Taiwan
TSMC is world’s largest semiconductor factory. costs are 8-10% lower than competitors. established ports
+ TAI
high wages
highest corporate tax payer in 2022 in Taiwan
~ TAI
uses more than 5% of all Taiwan’s electricity. burden and damages environment
assembly in Shenzhen
comparative advantage of large labour supply and low wages.
+ SHE
employs 200000 workers whose wages can benefit local businesses
- SHE
only earn $3.30. have to work long hours. often attempted suicide
R&D in Cali, UK, Japan
allows access to skilled workforces and advanced technology
+ RESEARCH
employ thousands around the world in well paid jobs
- RESEARCH
apple is known to avid taxes. In EU, found that Apple paid almost 0% corporate tax over a 10 yr period
americas market (37% profit)
45% revenue generation
large amounts of disposable income
china (27% profit)
large pop.
manufacturing market so high profit margins
role of TNCs in globalisation of economic activity
Major source of FDI, invest in countries with resources or skilled workforce or technology e.g Japan to take advantage of innovation. However, sometimes can result in tax evasion. Apple paid little over 0% corporation tax in the EU over a 10 yr period
advertising, promote products around the world. Apple is a global brand with its logo recognisable around the world. sales in most countries, affecting global economic activity. However, sold more in HICs due to being a premium product
trade, manufacturing processes occur around the world and must be brought together. Majority of iphones manufactured in Shenzhen with components coming from DRC, Taiwan etc. However, its is possible that these trade benefits are not shared equally and the increase does not benefit the globalisation of economic activity
outsourcing of labour, TNCs manufacture their products where labour is cheap. 50% of iphones manufactured in Shenzhen where workers earn $3.30. Suicide nets have been put in place with workers having to work long hours. Child labour in DRC. Therefore, although outsourcing has resulted in globalisation of economic activity, exploitation is common
