CASE STUDY - Apple: A Transnational Corporation

Question 1

Give 3 facts about Apple as a TNC.

Answer 1

1. Apple’s research and design centre is in Cupertino, California
2. 98,000 full time employees (across all 50 states)
3. It has over 450 retail outlets in 16 countries

Question 2

What is the total value of Apple?

Answer 2

$145 billion (the largest global brand by value)

Question 3

Where is the European HQ?

Answer 3

Cork, Ireland

Question 5

Why are Apple’s mainstream production lines based in China?

Answer 5

1. Low production costs - young, skilled, non-unionised workforce who will work long hours for low wages + lean production system
2. Shenzen is the first and most successful Special Economic Zone

Question 6

Name two TNCs that Apple outsources its production to in factories on mainland China.

Answer 6

Foxconn and Pegatron (Taiwanese electronics corporations)

Question 7

Describe Apple’s European HQ.

Answer 7

1. Generated 3000 jobs for workers in ancillary industries (music and apps)
2. 53 different languages spoken by Cork employees - 60% of workers are Irish
3. Apple’s HQ encouraged more TNCs to invest in the area like Phizer and EMC

Question 9

Why did Apple suffer from EU sanctions?

Answer 9

The EU has ordered for Apple to pay 13 billion euros in taxes which was avoided through a deal with the Irish government.

Question 10

Describe the working conditions in a Foxconn China factory

Answer 10

• Some employees work over 36 hours without being allowed a break
• Wages of $100 per month

Question 11

Describe the health and safety provisions in a Foxconn China factory.

Answer 11

• Some workers sued Apple after being poisoned by a chemical used to clean LCD screens.

Question 12

Describe the student and child labour in a Foxconn China factory.

Answer 12

• Employees under 18 are subjected to the same working conditions as adults but earn less pay

Question 13

Describe the suicide concerns at Foxconn China factories.

Answer 13

• 14 people died in 2010 after committing suicide due to their poor working conditions, following 2010 Foxconn installed suicide nets to limit the number of deaths.

Question 14

Describe the environmental issues associated with Apple’s production.

Answer 14

1. Apple contributes towards the 20 million tons of e-waste produced every year - mercury, lead and arsenic leach into ground waters
2. Most Apple products are non recyclable
3. Reliant on fossil fuels to supply electricity to data centres