L1.6b - Alternative TNCs - Apple (Ramnique) Flashcards
What does a spatial division of labour mean?
Distribution of high and low skilled work of a company on a national/international scale
How does Apple show a spatial division of labour?
Motherboards made in Shanghai
Korea constructs chips
R+D in Silicon Valley, California
How are there inequalities in pay throughout Apple?
Developers in USA make about $150k a year
Shanghai factory workers make £54 per month
How much do Foxconn Factories workers in China make?
£27 per month (higher than average)
Can be promoted to make iPods
How are factory workers in China benefitted?
Foxconn Factories provide banks, gyms, and shops on site - investment in infrastructure like this creates even more jobs
Foxconn provides counselling for workers
How have there been negative social impacts?
Factory workers in Suzhou sued Apple for being poisoned by a screen-cleaning chemical
Overworked - 12 hour shifts, must do overtime
Why does Apple source computer parts from various Asian countries?
Outsourcing
Find the cheapest places to produce computer parts to maximise profit
What countries are highly skilled work done for Apple in?
R+D - Silicon Valley, USA
Software engineering - UK
What countries are low skilled work done for Apple in?
Motherboard production - Shanghai, China
Chip construction - China
How are different countries linked?
Components come from Shanghai, Korea, etc. to plants in China which construct iPods
iPods sent to different countries, e.g. USA/UK to be sold
How is profit used?
Sent overseas like to the USA, not used to increase developing countries workers’ pay
How are workers in developing countries benefiting in terms of pay?
More stable and reliable, and higher than what is gotten from agriculture
