apple TNC

Question 1

cobalt extraction in DRC

Answer 1

rich cobalt reserves and responsible for more than 70% of its production worldwide. low cost due to poor enforcement of workers’ rights

Question 2

+ DRC

Answer 2

workers are willing to mine to to comparatively high wages to other employment opportunities

Question 3

~ DRC

Answer 3

children trafficked to work with money earned funding militia. lose out on education etc. death and injuries common

Question 4

tin in bolivia

Answer 4

mines in place
cheap labour with 15000 miners
lots of tin

Question 5

+ BOL

Answer 5

on a good day miners can make $50

Question 6

• BOL

Answer 6

deaths are common. miners do not have salary but sell what they mine. lack of regulation results in child labour

Question 7

semiconductor in Taiwan

Answer 7

TSMC is world’s largest semiconductor factory. costs are 8-10% lower than competitors. established ports

Question 8

+ TAI

Answer 8

high wages
highest corporate tax payer in 2022 in Taiwan

Question 9

~ TAI

Answer 9

uses more than 5% of all Taiwan’s electricity. burden and damages environment

Question 10

assembly in Shenzhen

Answer 10

comparative advantage of large labour supply and low wages.

Question 11

+ SHE

Answer 11

employs 200000 workers whose wages can benefit local businesses

Question 12

• SHE

Answer 12

only earn $3.30. have to work long hours. often attempted suicide

Question 13

R&D in Cali, UK, Japan

Answer 13

allows access to skilled workforces and advanced technology

Question 14

+ RESEARCH

Answer 14

employ thousands around the world in well paid jobs

Question 15

• RESEARCH

Answer 15

apple is known to avid taxes. In EU, found that Apple paid almost 0% corporate tax over a 10 yr period

Question 16

americas market (37% profit)

Answer 16

45% revenue generation
large amounts of disposable income

Question 17

china (27% profit)

Answer 17

large pop.
manufacturing market so high profit margins

Question 18

role of TNCs in globalisation of economic activity

Answer 18

Major source of FDI, invest in countries with resources or skilled workforce or technology e.g Japan to take advantage of innovation. However, sometimes can result in tax evasion. Apple paid little over 0% corporation tax in the EU over a 10 yr period

advertising, promote products around the world. Apple is a global brand with its logo recognisable around the world. sales in most countries, affecting global economic activity. However, sold more in HICs due to being a premium product

trade, manufacturing processes occur around the world and must be brought together. Majority of iphones manufactured in Shenzhen with components coming from DRC, Taiwan etc. However, its is possible that these trade benefits are not shared equally and the increase does not benefit the globalisation of economic activity

outsourcing of labour, TNCs manufacture their products where labour is cheap. 50% of iphones manufactured in Shenzhen where workers earn $3.30. Suicide nets have been put in place with workers having to work long hours. Child labour in DRC. Therefore, although outsourcing has resulted in globalisation of economic activity, exploitation is common