TNCs case study- apple

Question 1

What is the primary industry?

Answer 1

Natural resource exploitation such as oil and mining

Question 2

What is the secondary industry?

Answer 2

Manufacturing goods such as making clothes and vehicles

Question 3

What is the tertiary industry?

Answer 3

Providing services such as call centres

Question 4

What is the coronary industry?

Answer 4

Providing information

Question 5

Where are the headquarters of Apple based?

Answer 5

America and Western Europe
- Highly skilled educated people
- Demand is higher due to disposable income

Question 6

Location of research and development for Apple

Answer 6

Mainly in HICS
- Headquarters in California, Silicon Valley for Apple to access universities

Question 7

Benefits of headquarters in HICS

Answer 7

• highly skilled workers and funding
• Stable banks and finances
• Larger consumer base

Question 8

Location of TNC’s manufacturing and why

Answer 8

• Mainly in LIC and NEE is due to lower labour costs and less regulations for working safely
• Highly skilled workers in manufacturing

Question 9

Location of extraction of raw materials and why

Answer 9

Wherever is geologically viable and where you can find the material

Question 10

How much is Apple worth?

Answer 10

Worlds most valuable company with over $2.6 trillion

Question 11

Where does the chip fabrications come from for the Apple phones?

Answer 11

Taiwan

Question 12

Where are Apple headquarters?

Answer 12

Silicon Valley California

Question 13

Where is packaging and final test of the A12 chip done?

Answer 13

In the Philippines

Question 14

Where is the assembling of Apple products done and what TNC does this?

Answer 14

Foxconn in China

Question 15

Where is the UK headquarters of Apple?

Answer 15

In Cork in Ireland for tax evasion

Question 16

Why are Camera lenses shipped to China for assembly?

Answer 16

More highly skilled workers there

Question 17

Why do LIC’s have few to no suppliers for Apple?

Answer 17

Unstable economic conditions

Question 18

What are the target audiences of Apple?

Answer 18

HICS and NEES

Question 19

How many Apple Stores are there in the US?

Answer 19

227

Question 20

What are the four Ps in global marketing?

Answer 20

Price product place and promotion

Question 21

Benefits to the USA having apple headquarters based in USA

Answer 21

• Employment opportunities and tech industry
• Silicon Valley opportunities
• Apple Park run on renewable energy

Question 22

Cost of having headquarters in the USA

Answer 22

• not all workers paid fairly
• Haven’t reached carbon neutral goals and I only have five years left

Question 23

Benefits to China due to Apple

Answer 23

• higher wages
• Investment into the country generating jobs
• Creates special economic zones

Question 24

How many employees are there in Foxconn in China?

Answer 24

Over 400,000

Question 25

Social costs of Apple running in China

Answer 25

- Health and safety

Question 26

How many workers were poisoned by toxic chemicals due to lack of ventilation in a company subcontract by Foxconn

Answer 26

50

Question 27

What year were subcontracted Foxconn employees poisoned by toxic chemicals?

Answer 27

2010

Question 28

Economic costs of having Apple in China manufacturing

Answer 28

Low wages

Question 29

How many suicides took place between 2009 and 10 in China due to severe working conditions?

Answer 29

14

Question 30

Environmental cost of manufacturing for Apple in China

Answer 30

- Reliance on non-renewable resources to supply electricity - Use of toxic chemical chemicals such as PVC and brominated flame - Factories discharging, harmful pollutants into water supply and lack of recyclability