P2 Section A (TNCs And Global Commons ) Flashcards
What is a TNC
TNC is a company that operates across multiple countries
What does the spatial division of labour show
Spatial division of labour shows TNC HQ and research and development is usually in HICs with skilled professional and manufacturing is in LICs with low labour costs
What is global supply chain
Global supply chain is where production occurs globally and HQ and quaternary sectors are in HICs
What is vertical integration.
Vertical integration is when a company takes ownership of part of the supply chain like buying a plantation
What is horizontal integration
Horizontal integration is when a company takes ownership of another company
What is the multiplier effect
Multiplier effect is when initial capital investment in an economy creates income, like increasing employment, which increases wages, which increases spending and then tax revenue
Where is Apple’s EU HQ based
Apple’s EU HQ is based in Cork, Ireland
Where is Apple’s outsourcing of parts
Apple’s outsourcing of parts is in Foxxcon City in China
What happened to Apple in 2014
In 2014, Apple was ordered to pay €13 billion to Ireland as they’d breached standardised corporate tax practices.
How many people work for Apple in Cork
6000 people work for Apple in Cork which are mainly immigrants in high-skilled jobs
How much of Apple’s Irish workforce in Cork work in production line
60% of Apple’s Irish workforce in Cork work in production line (low-skilled job)
What is Ireland’s corporate tax
Ireland’s corporate tax is 12.5%, 2nd lowest in Europe
What were the conditions in Apple’s shenzen factory found to be like in 2006
the conditions in Apple’s shenzen factory were found in 2006 to be very bad with 200,000 workers regularly working 60 hours a week for around $100 a month in sweatshop conditions
How many suicides occurred in Apple’s shenzen factory in 2010
14 suicides occurred in Apple’s shenzen factory in 2010
How does Apple pose environmental threats
Apple poses environmental threats as it relies on non-renewables to supply electricity to its data centres and also uses toxic chemicals like PVC in manufacturing and factories in China have been found to discharge pollutants in water supplies which threatens public health
How much revenue did Apple make in 2020
Apple made $274 billion revenue in 2020
What is economic leakage
Economic leakage is where profits from a TNC are sent abroad (like back to origin country)
How are bananas grown by TNCs
Bananas are grown by TNCs in Ecuador and Colombia with vertical integration as they own plantations and have ripening and distribution facilities in consuming countries
Where are the main importers of bananas
The main importers of bananas are USA and EU
Where are the main consumers of bananas
Main consumers of bananas are in domestic markets like Brazil, India and the Philippines
Where are main exporters of bananas
Main exporters of bananas are Latin America and Caribbean with 80% of exports
How much money gets back to producer after consumption
Around 10% of cost paid by consumers will get sent back to producer as it will stay in HIC where most of the profits are kept by the retailer
How is Cambodia experiencing brain drain
Cambodia is experiencing brain drain as 7.6% of its population in 2016 emigrated and between 2018 and 2021, there was a 11.4% increase in remittances
What is global governance
Global governance is the ways in which global affairs affecting the whole world are managed by multiple nations
How has globalisation changed global governance
Globalisation has changed Global governance as increasing economic integration means TNCs are gaining more power to control resources, so global governance acts to regulate this
What is the aim of global governance
Aim of global governance is to regulate power of TNCs and manage the challenges of concerns like climate change, energy provision and trade.
What are issues with global governance
Issues with global governance are that countries may interpret laws differently, lower income countries will have less influence and also some argue global governance doesn’t address all serious issues like food security and water security
What are global institutions
Global institutions are groups who oversee the maintenance of global systems and represent all nations and protect them
What does the UN do
The UN enforces international laws and policies to maintain world peace
How has UN been successful
UN has been successful as there’s been no world wars since it’s setup in 1945, and over 170 UN settlements have ended regional conflicts