Unit 4 - Apple - Transnational Corporation

Question 1

Where is Apple headquartered?

Answer 1

• Cupertino, California

Question 2

What are the benefits for the host countries (where things are made, assembled, etc.) of Apple?

Answer 2

• get taxes- Infrastructure, healthcare etc.
• number of exports increase
• provides Jobs
• increases living standards
• overall well being is improved

Question 3

What is the commodity chain for Apple and where are these individual processes done?

Answer 3

1) Sourcing (USA, China, Europe, other Asian countries)
2) Manufacturing (assembly in China)
3) Warehousing (via UPS/Fedex, also one in California)
4) Distributor (online stores, retail stores, direct sales force, wholesalers, retailers, network carriers)
5) Return (Warranty return, trade in program, recycle/reuse program)

Question 4

How does Apple use outsourcing?

Answer 4

• Foxconn in China produces Apples products
• cheaper - cheaper labour etc.
• shipping is less expensive
• fewer taxes as China has special economic zones

Question 5

How does Apple damage the environment?

Answer 5

• phones are often not recycled and batteries harm the environment
• production produces CO2 which enhances global warming
• transport from the host countries to the market countries - pollution
• total footprint: 61% = manufacturing, 5% = transportation, 30% = product use, recycling = 2%, facilities = 2%