Global Systems & Governance - Apple - Role of TNCs Flashcards
1
Q
Where are the Apple headquarters?
A
Cupertino, Calefornia
2
Q
Where is the sales headquarters for Apple?
A
Cork, Ireland
3
Q
When was Apple founded and by who?
A
Founded on 1st April 1976 by Steve Jobs and Steve Wozniak
4
Q
How many people does Apple employ?
A
Over 137,000
5
Q
What are the locations of operations for Apple?
A
- Designed in Silicon Valley, California
- Made in China by Foxconn
- Sales HQ located in Cork due to only 12.5% cooperation tax
6
Q
What are some criticisms of Apple?
A
- Factory conditions have been questioned by many
- 14 people died in 2010 after committing suicide due to forced working conditions
- Working over 36 hours with no break
- Regularly working 60+ hours per week
- Wages as low as $100 per month
7
Q
Ireland…
A
- Generated 3000 jobs
- Highly skilled workforce - 60% Irish
- Many foreign workers so there aren’t enough jobs for locals
- Environmental impact
8
Q
Why have Apple become important in a global scale?
A
- Employs over 18,000 people directly and over 1 million involved indirectly.
- Has highly skilled workers in the quaternary sector e.g. computer scientists
- A fluid, simple to use, detailed website allows them to reach all corners of the planet
9
Q
Why does manufacturing occur in less developed countries?
A
- Wages are lower
- Land is cheaper to buy and therefore is relatively cheap to set up a factory. They can also sub-contract a factory meaning a new one doesn’t have to be built.
- Direct links to global markets
- Trade restrictions can be easily avoided
10
Q
Labour in China…
A
- 62 hours per week for $300 per month
- Workers exposed to toxic products and cleaning materials
- Earplugs and goggles not always available to workers
11
Q
Global branding
A
- Stylish and well-designed products have generated large numbers of loyal customers
- Used branding as a marketing tool to create an economy of scale, transforming the product into a brand
12
Q
Sustainability?
A
- Apple responses to Greenpeace with ‘Green my Apple’ campaign
- 100% renewable energy used in facilities
- Removed all PVC plastics
- Promoted recycling but lack of reparability is an issue
- 2016 Apple issues a $1.5 billion green climate bond, proceeds dedicated to financing environmental projects.
