Apple TNC case study Flashcards
In 2014, what was apple ranked in a list of the largest TNCs?
11th
Where does Apple find its majority market?
In core countries
Market demographic = young, wealthy + educated. Advertisements reflect this.
In the past 5 years, where has Apple’s most rapid growth been?
Outside USA, specifically in Asia-Pacific region.
Where is Apple’s headquarters and research centre?
Silicon Valley, California.
Communications and technology is strong here.
Choice of highly educated and skilled people to employ.
What company does Apple outsource its manufacturing to?
Foxconn, a Taiwanese company based in China.
Where is Apple’s european headquarters located?
Ireland
Where does Apple take most of its employees from?
USA
Why was Apple able to get low pay for highly skilled work they outsource to China?
Manufacturing companies competed for the job. This enabled Apple to push prices down.
Why has Apple become so big?
Investment into brand identity.
Diversifying into selling music and apps. 2 million downloads in first 16 days!
Created strong brand loyalty.
No need for glocalisation of advertisements.
How has Apple helped host countries - ECONOMICALLY?
- High status brand so encourages investment from other TNCs into the country.
- Jobs created directly and indirectly
- multiplier effect
- Higher wages to employees - Zhengzhou plant = pays wages above average!
How does Apple help host countries -
SOCIALLY?
- Employment
- Pays better than minimum wage in some areas.
How does Apple help host countries -
ENVIRONMENTALLY?
- 2017 - Greenpeace report on greener electronics = Apple ranked 2nd out of 17 world’s leading consumer electronics companies.
- Apple claims that by 2030, all Apple products will be made with 100% renewable resources.
- Apple ‘Trade Ins’
What are the negative impacts for host countries -
ECONOMICALLY?
- Repatriation of profits (leakages)
- Discontent with Apple’s tax avoidance!!!!
- 2012 = Fair Labour Association = 64.3% workers felt wage did not cover basic living costs.
What are the negative impacts for host countries - SOCIALLY?
- Workers concerned about job security.
- migration from rural to urban areas for work.
- greater inequalities between rural and urban population - lack of investment into rural.
- Working conditions in Foxconn - 2018 GUARDIAN report = 70hrs overtime - above Chinese law!
In 2011, what percentage of product sales were in the USA?
44%
By value, Apple is the largest TNC. What is Apple’s value in US billion dollars?
$234 billion
What is the name of the special economic zone (SEZ) that Apple has its chinese manufacturing plant in?
Shenzhen.
Apple’s use of Shenzen encourages investment from other TNCS and FDI.
Give an example of acquisition by Apple
Apple took over Stephen Job’s other company, NEXT.
When was Apple created?
1976.
How many countries can Apple stores be found in?
22
Negative environmental effects of Apple
Products with set lifespan.
Difficult to repair.
2018 - Guardian report - Found contaminated waste water from Apple manufacturing plants discharged into public drainage.
Impacts of Apple on China
1.3 million working for Apple at Foxconn
5 million jobs supported by Apple in China
62 hour working weeks, however, this has been discovered to be more like 70.
Impacts of Apple in Ireland
Ireland’s corporation tax = 12.5 % - 2nd lowest in EU! Great for Apple.
60% of employees in Ireland branch are Irish.
Located in Cork.
