TNC Example: Apple Flashcards
What does Apple do?
Producer and retailer of computer technology and mobile electronic devices
What are the reasons for Apple’s success?
Stylish and well-designed products
Innovative products
Focus on highly mobile devices - fits with markets needs
Slick marketing and branding
What is the spatial organisation of Apple?
Main products are designed in Silicon Valley, California, made in mainland China and sold all over the world especially to consumers in developed countries
Where are the headquarters?
California
With research and design centre
Where are the overseas headquarters?
European headquarters are in Cork, Ireland
Where is the manufacturing and assembly?
Outsourced to Foxconn, mainland China
How many retail stores does Apple have?
453 retail stores
110 in Europe and Middle East
25 in China
Where are its consumers?
Predominantly richer, developed countries
Average market profile - young wealthy and educated people
What are the positive economic impacts on host countries?
Employs 4000 workers directly on it’s imac production line and call centre
Cork’s largest private employer
Presence in Cork generated further 2500 jobs in supply chain
What are the negative economic impacts on host countries?
Accused of corporate tax avoidance
Many more highly skilled workers are foreign nationals (mainly from EU) so Apple is accused of generating sufficient work for local people.
What are the negative social impacts on host countries?
Worker suicides after severe working conditions
Working conditions - 200,000 workers who lived and worked in Shenzen factory were regularly working more than 60 hours a week
Health and Safety - workers sued Apple for being poisoned by toxic chemical used to clean IPad screens
Child labour - subjected to same working conditions as adults
What action did Apple take to reduce negative social impacts on host countries?
Now has a supplier code of conduct and audits it’s suppliers regularly
What are the negative environmental impacts on host countries?
Factories in China were discharging pollutants and toxic metals to local water supply.
Reliance on non-renewable resources to supply electricity to data centres.
Use of toxic chemicals such as PVC in manufacturing process
Lack of recyclability of many Apple products
What action did Apple take to reduce negative environmental impacts on host countries?
Launching ‘green my apple’ campaign
now used 75% renewable energy
Remove PVC plastics and some other chemicals from it’s products
What is the overall conclusion of impacts on host countries?
Globalisation of Apple is not solely a positive or negative process.
Providing employment to many in China to develop
Response to certain criticisms about labour practices and environmental issues demonstrates the concern shown by large TNCs regarding ethical purchasing and willingness to respond which is a positive feature of globalisation.
