TNCs (Apple example) Flashcards

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1
Q

when was apple founded

A

1976

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2
Q

where did apple move its European HQ to

A

Cork in Ireland

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3
Q

how many people does apple employ in iMac production in Cork

A

4,000 workers directly into iMac production and call centre (is Cork’s largest private employer)

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4
Q

why did Apple move to Ireland

A

low corporation tax (12.5%- second lowest in the EU)

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5
Q

positives of apple’s involvement in Ireland for Ireland

A

attracted other high-tech firms to the area
attracted a highly skilled workforce
company has contributed to infrastructure improvements in Cork
enhanced Ireland’s reputation

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6
Q

what has apple been accused of not doing in Ireland

A

creating sufficient work for local people

no product association with Ireland

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7
Q

what percentage of employees are irish in the irish apple factory

A

60%- causes tension as migrants put pressure of services and housing infrastructure

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8
Q

why are iMac’s made in Ireland

A

they are expensive to ship so cheaper to make it close to the marketplace
low corporation tax

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9
Q

how many people does apple DIRECTLY employ in china

A

over 40,000 jobs

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10
Q

benefits of apple being in china for china

A

brought in investment
employees earn $200 a month (above average)
receive education and training

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11
Q

example of terrible working conditions at Foxconn in China

A

in 2010 50 workers were poisoned by a toxic chemical used to clean iPad screens
by the end of 2010 14 suicides had occurred largely as a consequence of severe working conditions

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12
Q

how many people work at Foxconn

A

200,000

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13
Q

what percentage of apple’s market is in the USA

A

44%

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14
Q

what percentage of apple staff in the USA are being paid above the average wage for the USA

A

26%

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15
Q

benefits of apple in the USA for the USA

A

thousands of highly skilled staff (r and d)
leaders of high tech industry - attracting investment
employ young staff

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16
Q

where is apple’s marketing strategy based

A

online - there are no tv adverts directly from Apple (the retailers and phone companies pay for the TV adverts)

17
Q

how many stores does apple have and how many countries are they in

A

has over 450 retail stores in 16 countries

18
Q

environmental issues caused by apple

A

it relies on non-renewable resources
factories in china were discharging pollutants and toxic metals into local water supplies
lack of recyclability of many apple products

19
Q

what has apple done to reduce its environmental impact (3 ways)

A

now uses 75% renewable energy
invested in large solar farms to power its data centres
started to promote the recycling of its products

20
Q

what percentage of TNCs are based in MEDCs

A

90%

21
Q

examples of places TNCs are based in

A

USA, France, Germany, the UK and Japan

22
Q

why are the overseas branches of TNCs in LEDCs

A

production costs are cheaper
financial incentives such as lower tax
fewer environmental restrictions

23
Q

TNCs also have branches in other MEDCs, often choosing areas with:

A

a suitable workforce
cheap land
well developed transport facilities
high unemployment- available work supply