Development Case Study-Apple Flashcards
Reasons for TNC growth
Improvement in technology and transport
Cheaper labour
Flexible workforce
Encouragement from government
Cheaper land
Fewer environmental restriction
Where is Apple located
Apple headquarters is located in Cupertino, Silicon Valley,California United States
Reasons for locating Apple HQ in Silicon Valley
Many silicon chip innovators and manufacturers
—> knowledge can be shared
Attracted skilled graduates as top universities are nearby
Scientific and technological centres in the world are close
—> NASA, CISCO, Intel, Google
Near to major road system and airport for internal transport and international trade
Plenty of space for the development and future expansion
—> greenfield sites available
Near to large cities such as San Francisco
Attraction to live near the countryside
E.g castle rock state park
How many employees
98,000 full time employees
Why Apple mainstream products are produced in China for a number of reasons
- large source of highly skilled low paid workers
- this generates jobs and brings investment into China
- Foxconn city is a business park it contains high security and workers work on site
- infrastructure development
China working condition
In 2006 was reported 200,000 workers were working more than 60 hours per week earning less than $100 per month
China health and safety
In 2010, 50 workers were poisoned with a toxic chemical used to clean LCD screen
China child labour
Foxconn use of children is part of its objective for a flexible labour force
China suicide
14 people died in 2010 after committing suicide,
—> due to condition they were forced to work in
Employees working condition
Working over 36 hours without being allowed to have breaks
—> over 36 hours without being allowed to have a break, and regularly work around 60 hours per week
The wages are low at $100 per month
Coltan mining in the eastern Congo impacts
Large scale of deforestation of the rainforest in the mining areas
—> loss of animal habitat
—>soil degradation
—>high rates of flooding
Water pollution as chemicals from mining and cleaning Colton
—> river animals
—>loss of fish for local people
—>contaminated water supply may cause illness
Conflict has developed- guerilla war face where gangs fight to control coltan mining areas due to money
Dangerous working conditions
—> many young boys work in the mines and can stay underground for 2-4 days in a row mining coltan
Temporary poor quality settlement for house workers —> overcrowded —>poor sanitation —>poor access to water —>poor living conditions
Manufacturing Apple products in China = sub contract
-Apple pays companies such as Foxconn and pegaton in China to manufacture their products
Employee 1.2 million
—> located in special economic zone:areas developed by the Chinese government to encourage foreign investment and attract foreign companies
- > excellent transport links and infrastructure
- > cheap available labour that work long hours
- > reduced taxes, limited environmental laws
Factories in the Shenzhen area have efficient assembly lines and are close to Hong Kong which has a huge port to export products
Problems of manufacturing in China
Sweatshops
Poor working conditions
Dangerous and cramped working conditions
Long hours
Low pay
Limited worker rights
Limited holidays
Reports of ID cards taken from workers so they can’t leave the job
Environmental issues
Pearl river delta is one of the most polluted rivers in the world & air pollution levels are high
—>Pearl river delta drains into the South China Sea endangering species like Chinese white dolphin
—>from factory waste and untreated sewage’s
——> 1/2 of all the waste is not treated before it is damped into the river
—> pollution from factory waste & untreated sewage’s
——> river water is dangerous and shouldn’t be used for drinking water
EROSION
-> reduced vegetation cover caused by rapid urban expansion
Air pollution
-> sulphur dioxide and nitrogen from burning coal in power plant which causes acid rain
—> 80% of rainfall in Guangzhou is acid rain
Management strategies
The government is spending $7.1 billion to help clean the river
—> by building 30 new sewage’s works
Reduce sulphur dioxide emitted from power plants by 40% by using natural gas instead of coal
