Global governance TNC case study: APPLE

Question 1

list the reasons for TNC growth

Answer 1

improvement in technology and transport 
cheaper labour 
flexible workforce 
encouragements from government 
cheaper land 
fewer environmental restrictions

Question 2

after watching the apple documentary what were the key issues?

Answer 2

• poor working conditions and sanitation
• international
• long hours, poor conditions
• low standards
• no training
• illegal mining
• dangerous conditions
• breaching of rules

Question 3

what is apple?

Answer 3

A US, TNC based in cupertino, northern california

Question 4

background information about apple

Answer 4

• US TNC
• headquarters based in cupertino, northern california
• started business in 1976
• since 2000 has experienced phenomenal growth
• number one global brand by value
• 98,000 full time employees

Question 5

spatial organisation of apple

Answer 5

• main products are designed in silicone valley, California and made in mainland china by foxcon
• products are sold worldwide but mostly in developed
• headquarters + research design centre are together on apple headquarters in cupertino
• 3 futher data centres in USA
• main production centre is Foxcon in foxcon city

Question 6

production- apples mainstream products are produced in china for a number of reasons

Answer 6

• large source of highly skilled, low paid workers
• this generates jobs and brings investment into china
• foxcon city is a business park it contains high security and workers work on site

Question 7

ireland cork

Answer 7

• only fully apple owned manufacturing facility in the world
• apple was lured to locate in ireland because of the 12.5% corporation tax

Question 8

positive aspects of apple in ireland

Answer 8

• employs 4000 workers
• presence in cork has now generated a further 2500 jobs
• company as contributed to infraturctural development in city

Question 9

negative impacts of apple in

Answer 9

many of highly skilled workers are foreign so apple has been accused of not creating sufficient work for locals

Question 10

tax practices

Answer 10

apple has been accused of avoiding corporate tax
apple uses subsidary firms in other countries in order to avoid tax
it was claimed apple had recieved favourable treatment of tax from irish government

Question 11

environmental issues within apple

Answer 11

criticisms have mainly came from greenpeace for…

• it’s reliance on non renewable sources to supply energy
• use of toxic chemicals
• lack of recyclable products

Question 12

china - working conditions

Answer 12

in 2006 is was reported 200,000 workers were working more than 60 hours per week earning less tha $100 per month

Question 13

china - health and safety

Answer 13

in 2010 50 workers were poisoned with a toxic chemical

Question 14

china - child labour

Answer 14

foxcons use of children is part of its objective for a felxible labour force

Question 15

china - suicides

Answer 15

10 suicides in 2009 brought damage to apples reputation