lesson 14- TNCs- Apple CS Flashcards
what is a TNC
a cooperation operating out of multiple countries, usually with a global headquarters
what is spatial organisation
the arrangement of different elements within a space, focusing on how they interact and relate
in 2013, __% of trade was linked to TNCs
80
why do TNCs operate in multiple countries?
-escape trade tariffs
-lowest cost of production
-reach foreign markets
-exploit resources
what is vertical integration?
when a firm owns the whole supply chain, from raw material (primary) to tertiary
what is horizontal integration?
a company diversifies its operations by expansion, merger or takeover, and specialises in one stage of production
how did Apple start and begin to grow?
started as a personal computer manufacturer in 1976, took over the machintosh organisation in 1982
-growing reputation for quality and has loyal consumers
_ largest IT company by revenue
_ global brand by value
_ full time employees
2nd
1st
98,000
where are most of Apples products manufactured?
Shenzen, China
foxconn city- self contained with security and dorms
how does apple impact Ireland?
-and what is its correlation to Ireland
it has its European HQ in Cork due to low corporation tax (12.5%)
-employs 4000 workers on its IMac line and call center
2500 jobs created
attracted other high tech firms to Cork
many of the workers employed are immigrants, not locals
what are the working conditions like in China for Apple
-in 2006 reported that 200,000 workers in Shenzen factory worked more than 60 hours a week for around $100 a month, which mainly went towards paying living expenses
-‘sweatshop conditions’
-enforced overtime
what is health and safety like in China for Apple
-in 2010, 50 workers were poisoned by chemicals used to clean ipad screens
-no ventilation to lower costs
what is student and child labour like in China for Apple
lower cost
-uni students forced to work in order to graduate
how many suicides had there been in Chenzen by 2010?
14
what are the environmental impacts like in China for Apple
-non renewable energy
-toxic chemicals such as PVC released into local water supplies
-non recyclable products
however
‘green my apple’ campaign- now uses 75% renewable energy, removed PVC plastics from products and promoted recycling
