Apple TNC (NIDL)

Question 1

Cobalt extraction in the DRC

Answer 1

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

Question 1

+ve DRC

Answer 1

• workers willing to mine as it pays comparatively high to other employment

Question 2

-ve DRC

Answer 2

• children trafficked to work, with earned money used to fund militia.
  – means they lose out on education, long run of DRC impacted
• deaths and injuries common

Question 3

Tin in Bolivia (resource for soldering components)

Answer 3

• mines already in place
• cheap labour with 15000 miners
• lots of tin

Question 4

+ve Bolivia

Answer 4

• on a good day miners can make $50

Question 5

-ve Bolivia

Answer 5

• deaths are common
• miners don’t have salary, they sell what they mine
• lack of regs results in child labour

Question 6

semiconductor in taiwan (manufacturing components)

Answer 6

• TSMC is worlds largest semiconductor factory
• costs are 8-10% lower than competitors
• established ports

Question 7

+ve Taiwan

Answer 7

• high wages
• highest corporate tax payer in ‘22 in taiwan

Question 8

-ve Taiwan

Answer 8

• uses more than 5% of all Taiwan’s electricity
• damaging for environment + burden for elec grid

Question 9

assembly in Shenzhen

Answer 9

• comparative advantage of large labour supply and low wages

Question 10

+ve shenzhen

Answer 10

• employs 200000 workers whose wages can benefit local businesses

Question 11

-ve Shenzhen

Answer 11

• only earn $3.30 daily
• long hours
• often attempted suicide

Question 12

R+D in Cali, UK, Japan

Answer 12

• allows access to skilled workforces and advanced tech

Question 13

+ve R+D

Answer 13

• employ thousands around the world in well paid jobs

Question 14

-ve R+D

Answer 14

• Apple is known to avoid taxes. In EU, was found that Apple paid almost 0% corporate tax over 10 year period.

Question 15

Americas market (37% profit)

Answer 15

• 45% revenue generation
• large amounts of disposable income

Question 16

China (27% profit)

Answer 16

• large population
• manufacturing market, so high-profit margins

Question 17

role of TNCs in the globalisation of econ activity (short)

Answer 17

• major source of FDI
• advertising
• trade
• outsourcing labour

Question 18

role of TNCs in globalisation of economic activity (long)

Answer 18

• major source of FDI, invest in LIC with resources or skilled workers/advanced tech, e.g. Japan to utilise innovation.
  HOWEVER leads to tax evasion, apple paid approx 0% over 10yrs
• advertising, promotes products around world. apple = a global brand, w sales in most countries, affects economic activity.
  HOWEVER most sales in HICs because premium product
• trade, manufacturing happens around world + needs to be brought together. majority made in shenzhen, components from DRC, taiwan etc.
  HOWEVER its possible trade benefits arent shared equally + an increase doesn’t benefit globalisation of econ activity
• outsourcing labour, TNCs manufacture where labour is cheap, in Shenzhen workers earn $3.30. suicide nets put in place for long hour workers. child labour in DRC.
  HOWEVER, despite outsourcing leading to globalisation of econ activity, exploitation is common.