Apple TNC case study

Question 1

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

Answer 1

11th

Question 2

Where does Apple find its majority market?

Answer 2

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

Question 3

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

Answer 3

Outside USA, specifically in Asia-Pacific region.

Question 4

Where is Apple’s headquarters and research centre?

Answer 4

Silicon Valley, California.

Communications and technology is strong here.

Choice of highly educated and skilled people to employ.

Question 5

What company does Apple outsource its manufacturing to?

Answer 5

Foxconn, a Taiwanese company based in China.

Question 6

Where is Apple’s european headquarters located?

Answer 6

Ireland

Question 7

Where does Apple take most of its employees from?

Answer 7

USA

Question 8

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

Answer 8

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

Question 9

Why has Apple become so big?

Answer 9

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.

Question 10

How has Apple helped host countries - ECONOMICALLY?

Answer 10

• 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!

Question 11

How does Apple help host countries -
SOCIALLY?

Answer 11

• Employment
• Pays better than minimum wage in some areas.

Question 12

How does Apple help host countries -
ENVIRONMENTALLY?

Answer 12

• 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’

Question 13

What are the negative impacts for host countries -
ECONOMICALLY?

Answer 13

• 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.

Question 14

What are the negative impacts for host countries - SOCIALLY?

Answer 14

• 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!

Question 15

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

Answer 15

44%

Question 16

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

Answer 16

$234 billion

Question 17

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

Answer 17

Shenzhen.

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

Question 18

Give an example of acquisition by Apple

Answer 18

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

Question 19

When was Apple created?

Answer 19

1976.

Question 20

How many countries can Apple stores be found in?

Answer 20

22

Question 21

Negative environmental effects of Apple

Answer 21

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

Question 22

Impacts of Apple on China

Answer 22

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.

Question 23

Impacts of Apple in Ireland

Answer 23

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

60% of employees in Ireland branch are Irish.

Located in Cork.