Apple TNC (NIDL) Flashcards
1
Q
Cobalt extraction in the DRC
A
- rich cobalt reserves responsible for more than 70% of its production worldwide.
- low cost because of poor enforcement of workers’ rights
1
Q
+ve DRC
A
- workers willing to mine as it pays comparatively high to other employment
2
Q
-ve DRC
A
- children trafficked to work, with earned money used to fund militia.
– means they lose out on education, long run of DRC impacted - deaths and injuries common
3
Q
Tin in Bolivia (resource for soldering components)
A
- mines already in place
- cheap labour with 15000 miners
- lots of tin
4
Q
+ve Bolivia
A
- on a good day miners can make $50
5
Q
-ve Bolivia
A
- deaths are common
- miners don’t have salary, they sell what they mine
- lack of regs results in child labour
6
Q
semiconductor in taiwan (manufacturing components)
A
- TSMC is worlds largest semiconductor factory
- costs are 8-10% lower than competitors
- established ports
7
Q
+ve Taiwan
A
- high wages
- highest corporate tax payer in ‘22 in taiwan
8
Q
-ve Taiwan
A
- uses more than 5% of all Taiwan’s electricity
- damaging for environment + burden for elec grid
9
Q
assembly in Shenzhen
A
- comparative advantage of large labour supply and low wages
10
Q
+ve shenzhen
A
- employs 200000 workers whose wages can benefit local businesses
11
Q
-ve Shenzhen
A
- only earn $3.30 daily
- long hours
- often attempted suicide
12
Q
R+D in Cali, UK, Japan
A
- allows access to skilled workforces and advanced tech
13
Q
+ve R+D
A
- employ thousands around the world in well paid jobs
14
Q
-ve R+D
A
- Apple is known to avoid taxes. In EU, was found that Apple paid almost 0% corporate tax over 10 year period.
15
Q
Americas market (37% profit)
A
- 45% revenue generation
- large amounts of disposable income
16
Q
China (27% profit)
A
- large population
- manufacturing market, so high-profit margins
17
Q
role of TNCs in the globalisation of econ activity (short)
A
- major source of FDI
- advertising
- trade
- outsourcing labour
18
Q
role of TNCs in globalisation of economic activity (long)
A
- major source of FDI, invest in LIC with resources or skilled workers/advanced tech, e.g. Japan to utilise innovation.
HOWEVER leads to tax evasion, apple paid approx 0% over 10yrs - advertising, promotes products around world. apple = a global brand, w sales in most countries, affects economic activity.
HOWEVER most sales in HICs because premium product - trade, manufacturing happens around world + needs to be brought together. majority made in shenzhen, components from DRC, taiwan etc.
HOWEVER its possible trade benefits arent shared equally + an increase doesn’t benefit globalisation of econ activity - outsourcing labour, TNCs manufacture where labour is cheap, in Shenzhen workers earn $3.30. suicide nets put in place for long hour workers. child labour in DRC.
HOWEVER, despite outsourcing leading to globalisation of econ activity, exploitation is common.
