✅Case Study - Apple as a TNC

Question 1

Where are Apple’s headquarters?

Answer 1

California

Question 2

Apple is the number one…

Answer 2

…global brand by value

Question 3

How much is Apple worth?

Answer 3

$145 billion

Question 4

How many full time retail employees does Apple have?

Answer 4

98,000

Question 5

Where does Apple stand in the global TNC rankings?

Answer 5

11th

Question 6

What is Apples market predominantly aimed at?

Answer 6

Richer, developed countries
44% of sales are in the USA

Question 7

Where has the most rapid growth been in recent years?

Answer 7

Asia Pacific region

Question 8

Where are most of Apple’s employees based?

Answer 8

In the developed world, mainly USA

Question 9

Where are its US offices located?

Answer 9

Cupertino, Newark and Santa Clara, CA and Maiden, North Carolina

Question 10

Where are Apple’s European headquarters?

Answer 10

Cork, Ireland

Question 11

Which company is manufacture of iPhones, iPods and iPads outsourced to?

Answer 11

Foxconn

Question 12

Where is Foxconn city?

Answer 12

Shenzen, Guangdong Province, China

Question 13

How many retail stores does Apple have?

Answer 13

453

Question 14

Where are the retail stores located?

Answer 14

110 in Europe and Middle East

25 in China

Question 15

Why are Apple’s products made in China?

Answer 15

Large source of skilled, hard working, low paid workers
A number of companies competed for the Apple contract, forcing down costs
Shenzen was the location of China’s first Special Economic Zone, attracting many foreign companies

Question 16

What is Foxconn city?

Answer 16

A business park with a number of factories belonging to different manufacturers of high tech products

Question 17

How many people are employed in Foxconn city?

Answer 17

40,000

Question 18

How do people live in Foxconn city?

Answer 18

It is self contained and high security, and most workers live on site where there are shops, dormitories and cafes

Question 19

What are wages like in Foxconn city?

Answer 19

$150-200 a month, above minimum wage and above average for China

Question 20

Why was Apple attracted to Ireland?

Answer 20

It has low corporation tax, second lowest in the EU

Question 21

How many jobs have been generated in Cork?

Answer 21

2500

Question 22

How has the company’s presence benefited Cork?

Answer 22

It has attracted other large firms to operate there too as well as a highly skilled workforce

Question 23

How has Apple negatively impacted Cork?

Answer 23

Much of the workforce are foreign EU nationals, and Apple was accused of not creating enough work for locals

Question 24

Why has Apple been criticised for tax practices?

Answer 24

It has used subsidiary firms in other countries to declare profits and pay lower tax rates

Question 25

How has Apple cuased tension between the US and EU?

Answer 25

Both claimed that Apple owed then tax on their profits which exposed a flaw in the globalised world

Question 26

What was reported about Apple’s Chinese factories in 2006?

Answer 26

That 200,000 workers were regularly working more than 60 hours a week for around $100 a month, half of which was taken up by living costs

Question 27

Why was Apple sued by Chinese workers in 2010?

Answer 27

Fifty workers were poisoned by a toxic chemical used to clean iPad screens, as adequate ventilation had not been installed to reduce costs

Question 28

How are children treated in Apple factories?

Answer 28

The same as adults, with same hours and working conditions but called ‘trainees’ or ‘interns’ to avoid prosecution

Question 29

How has Apple responded to the issues in China?

Answer 29

It now has a Supplier Code of Conduct to audit its supplier factories regularly

Question 30

Which NGO has criticised Apple’s environmental practices?

Answer 30

Greenpeace

Question 31

What 4 environmental issues were Apple criticised on?

Answer 31

Reliance on non-renewable resources to supply electricity
Use of toxic chemicals in manufacturing
Factories in China discharge pollutants into water supplies, threatening public health
Lack of recyclability of many Apple products

Question 32

How has Apple changed its environmental practices?

Answer 32

It now uses 75% renewable energy from solar farms
It removed toxic chemicals from production
Promotes recycling of products