Apple TNC case study Flashcards

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1
Q

In 2014, what was apple ranked in a list of the largest TNCs?

A

11th

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2
Q

Where does Apple find its majority market?

A

In core countries
Market demographic = young, wealthy + educated. Advertisements reflect this.

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3
Q

In the past 5 years, where has Apple’s most rapid growth been?

A

Outside USA, specifically in Asia-Pacific region.

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4
Q

Where is Apple’s headquarters and research centre?

A

Silicon Valley, California.

Communications and technology is strong here.

Choice of highly educated and skilled people to employ.

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5
Q

What company does Apple outsource its manufacturing to?

A

Foxconn, a Taiwanese company based in China.

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6
Q

Where is Apple’s european headquarters located?

A

Ireland

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7
Q

Where does Apple take most of its employees from?

A

USA

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8
Q

Why was Apple able to get low pay for highly skilled work they outsource to China?

A

Manufacturing companies competed for the job. This enabled Apple to push prices down.

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9
Q

Why has Apple become so big?

A

Investment into brand identity.
Diversifying into selling music and apps. 2 million downloads in first 16 days!
Created strong brand loyalty.
No need for glocalisation of advertisements.

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10
Q

How has Apple helped host countries - ECONOMICALLY?

A
  • High status brand so encourages investment from other TNCs into the country.
  • Jobs created directly and indirectly
  • multiplier effect
  • Higher wages to employees - Zhengzhou plant = pays wages above average!
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11
Q

How does Apple help host countries -
SOCIALLY?

A
  • Employment
  • Pays better than minimum wage in some areas.
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12
Q

How does Apple help host countries -
ENVIRONMENTALLY?

A
  • 2017 - Greenpeace report on greener electronics = Apple ranked 2nd out of 17 world’s leading consumer electronics companies.
  • Apple claims that by 2030, all Apple products will be made with 100% renewable resources.
  • Apple ‘Trade Ins’
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13
Q

What are the negative impacts for host countries -
ECONOMICALLY?

A
  • Repatriation of profits (leakages)
  • Discontent with Apple’s tax avoidance!!!!
  • 2012 = Fair Labour Association = 64.3% workers felt wage did not cover basic living costs.
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14
Q

What are the negative impacts for host countries - SOCIALLY?

A
  • Workers concerned about job security.
  • migration from rural to urban areas for work.
  • greater inequalities between rural and urban population - lack of investment into rural.
  • Working conditions in Foxconn - 2018 GUARDIAN report = 70hrs overtime - above Chinese law!
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15
Q

In 2011, what percentage of product sales were in the USA?

A

44%

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16
Q

By value, Apple is the largest TNC. What is Apple’s value in US billion dollars?

A

$234 billion

17
Q

What is the name of the special economic zone (SEZ) that Apple has its chinese manufacturing plant in?

A

Shenzhen.

Apple’s use of Shenzen encourages investment from other TNCS and FDI.

18
Q

Give an example of acquisition by Apple

A

Apple took over Stephen Job’s other company, NEXT.

19
Q

When was Apple created?

A

1976.

20
Q

How many countries can Apple stores be found in?

A

22

21
Q

Negative environmental effects of Apple

A

Products with set lifespan.
Difficult to repair.
2018 - Guardian report - Found contaminated waste water from Apple manufacturing plants discharged into public drainage.

22
Q

Impacts of Apple on China

A

1.3 million working for Apple at Foxconn

5 million jobs supported by Apple in China

62 hour working weeks, however, this has been discovered to be more like 70.

23
Q

Impacts of Apple in Ireland

A

Ireland’s corporation tax = 12.5 % - 2nd lowest in EU! Great for Apple.

60% of employees in Ireland branch are Irish.

Located in Cork.