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Global Systems and Global Governance > Apple Inc. TNC Case Study > Flashcards

Apple Inc. TNC Case Study Flashcards

1
Q

What does Apple do?

A

Produce and sell computer technology and mobile electronic devices.

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2
Q

Where are Apple headquarters located?

A

Cupertino, northern California

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3
Q

In which year were Apple Watches launched?

A

2015

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4
Q

When did the company start?

A

1976

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5
Q

What did Apple do in the early days? (1976)

A

Manufacture PCs

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6
Q

Which organisation did Apple take over?

A

MacIntosh

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7
Q

When did Apple take over MacIntosh?

A

1982

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8
Q

After taking over MacIntosh, how did Apple achieve more success?

A

It launched a new brand of desktop MacIntosh (now AppleMac)

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9
Q

What did AppleMac computers gain a reputation for?

A

Quality

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10
Q

What type of market did AppleMacs attract?

A

A niche market

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11
Q

What has Apple experienced since 2000?

A

Phenomenal growth

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12
Q

Why has Apple experienced phenomenal growth since 2000?

A

Due to its development of mobile and Wi-Fi devices.

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13
Q

Where does Apple rank in terms of being a large IT company by revenue?

A

It is the second-largest IT company by revenue

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14
Q

Where does Apple rank in terms of being a large mobile phone manufacturer?

A

It is the third-largest mobile phone manufacturer

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15
Q

Which brand is the world’s largest music retailer?

A

Apple through its iTunes store

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16
Q

Where does Apple rank in terms of having a large global brand value?

A

It is the number one global brand by value

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17
Q

What is Apple’s value?

A

US$145billion

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18
Q

How many full time employees does Apple have?

A

98,000

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19
Q

How many retail stores does Apple have?

A

453

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20
Q

How many countries have Apple stores?

A

16

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21
Q

What were Apple’s total assets valued at in 2014?

A

US$207 billion

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22
Q

In which year was Apple the 11th largest TNC globally?

A

2014

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23
Q

What has caused Apple’s success? (5)

A

Stylish and well-designed products
Slick marketing
Innovative products
Focus on highly mobile devices which fits their market’s needs.
Selling ancillary products via the internet

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24
Q

In which type of countries is Apple’s market predominantly in?

A

Richer, developed countries

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25
Q

What percentage of Apple sales were in the USA in 2011?

A

44%

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26
Q

What is Apple’s average market profile?

A

Young, wealthy and educated people

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27
Q

What is the average age of Apple consumers?

A

31

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28
Q

How wealthy is the average Apple buyer?

A

On average, Apple customers earn 26% more than the national average

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29
Q

What percentage of people that buy Apple products are graduates?

A

58%

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30
Q

In the past 5 years, where has Apple experienced the most rapid growth?

A

Outside the USA, especially in the Asia-Pacific region

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31
Q

Where are Apple’s HQ and research & design centres?

A

On the Apple Campus in Cupertino, California

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32
Q

Where are Apple’s European headquarters?

A

Cork, Ireland

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33
Q

How many people are employed in Cork’s Mac production line?

A

4000

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34
Q

What does Apple also have in Cork?

A

A customer support and online store call centre

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35
Q

Where is Apple’s manufacture mainly outsourced to?

A

Foxconn, a Taiwanese company

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36
Q

Where does Foxconn have lots of factories?

A

In China

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37
Q

Does Foxconn subcontract?

A

Yes

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38
Q

Where are Apple’s main products designed?

A

Silicon Valley, California

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39
Q

How many data centres does Apple have in the USA?

A

4

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40
Q

What is a good example of Agglomeration?

A

The concentration of R&D and data centre locations in Silicon Valley

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41
Q

Why are agglomerations important for high-tech industries?

A

Information exchange and access to well-qualified expert staff is crucial.

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42
Q

How many retail stores does Apple have in Europe and the Middle East?

A

110

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43
Q

How many Apple retail stores are in China?

A

25

44
Q

Where has Apple increased its market by 600million people?

A

China

45
Q

What has forced down production costs?

A

There was lots of competition for manufacturing contracts.

46
Q

Where is Foxconn’s main production base?

A

Shenzen

47
Q

Why did Foxconn locate in Shenzen?

A

It was the location of China’s first and most successful Special Economic Zone (SEZ)

48
Q

What doe SEZ’s offer and why?

A

Incentives to attract foreign companies

49
Q

What is Foxconn City?

A

A business park in Shenzen

50
Q

Why is Foxconn City dubbed “China’s Silicon Valley”?

A

It has many factories belonging to well-known high-tech brands

51
Q

Where do most factory workers live and why?

A

In the Foxconn City business park because it is self contained with high security and dormitories, shops and cafes.

52
Q

How much are workers in Foxconn City paid?

A

US$150 to US$200 per month

53
Q

Are workers in Foxconn City paid more or less than in other parts of Shenzen and China?

A

They are paid more than the average minimum wage

54
Q

How many workers are employed in Foxconn City?

A

400,000

55
Q

Where is the only fully Apple-owned manufacturing facility in the world?

A

Hollyhill, on the north side of Cork

56
Q

Why did Apple locate in Ireland?

A

The government has a 12.55 corporation tax which is the second lowest in the EU.

57
Q

Apple is Cork’s largest what?

A

Private employer

58
Q

How many workers work directly on the Mac production line and call centre in Cork?

A

4000

59
Q

What has Apple’s presence in Cork done?

A

Attracted other high-tech firms to the area.

60
Q

How many jobs have been provided in Cork as a result of Apple’s supply chain and ancillary services?

A

2500

61
Q

What has Apple contributed to and expanded in Cork?

A

Infrastructural improvements

62
Q

What has contributed to Ireland’s “Celtic Tiger” economy of the 1990s and early 2000s?

A

The presence of Apple and other high-tech TNCs.

63
Q

What is a negative consequence of Apple locating in Ireland?

A

Many of the skilled workers are foreign nationals and so Apple has been accused of not creating sufficient work for the local people.

64
Q

What percentage of Apple workers in Cork are Irish?

A

60%

65
Q

What type of tax has Apple been accused of avoiding?

A

Corporate tax avoidance

66
Q

How can Apple pay lower rates of tax?

A

It can use subsidiary firms in other countries to declare profits.

67
Q

Who investigated Apple’s tax liabilities?

A

The US Senate and the EU commission

68
Q

When were Apple’s tax liabilities investigated?

A

2014

69
Q

What was claimed against the Irish government?

A

They had been too favourable of Apple in terms of tax treatment which the Irish government denied.

70
Q

What caused tensions between the EU and US?

A

The EU and USA both claimed that Apple owed them tax on their profits.

71
Q

How do taxation systems need to be altered as the world becomes more globalised?

A

They need to be updated to accommodate large TNCs.

72
Q

Where does Apple get most of its profit from?

A

Intellectual property, marketing, patenting and branding

73
Q

What is the problem with Apple’s profit coming from intellectual property, branding, patenting and branding?

A

It can be funnelled through a maze of subsidiaries.

74
Q

How many workers in Apple’s Shenzen factory in 2006 were earning $100 a month for 60 hour weeks?

A

200,000

75
Q

How much of the Shenzen worker’s wage was taken up by living expenses in 2006?

A

Half

76
Q

In 2006, how much did workers at the Shenzen factory earn a month?

A

$100

77
Q

In 2006, how many hours a week did workers at the Shenzen factory work?

A

60

78
Q

What did media reports say about Apple in 2006

A

“Sweatshop conditions”

Enforced overtime

79
Q

What happened to 50 workers at Lianjian Technology?

A

They were poisoned by a toxic chemical used to clean iPad screens.

80
Q

What is Lianjian Technology?

A

A company subcontracted by Foxconn

81
Q

When were 50 workers poisoned?

A

2010

82
Q

What did the 50 workers who were poisoned decide to do?

A

Sue Apple

83
Q

Why did the poisoned workers try and sue Apple?

A

In order to reduce costs, adequate ventilation had not been installed.

84
Q

How did the poisoned workers settle their case?

A

Out of court

85
Q

Why does Foxconn use students and children as workers?

A

As a part of its objective of maintaining a low-cost and flexible labour force.

86
Q

Who supported the Foxconn child workers policy?

A

Provincial authorities

87
Q

How did the provincial authorities support Foxconn’s child worker policy?

A

By allowing them to be graded as interns or trainees

88
Q

How did the provincial authorities support Foxconn’s student worker policy?

A

By making work there a condition of graduating

89
Q

When did the Foxconn suicides happen?

A

2009-10

90
Q

Why did a worker commit suicide in 2009?

A

After coming under pressure from a prototype model of the iPhone 4 disappearing.

91
Q

How many suicides had taken place by the end of 2010?

A

14

92
Q

Why did so many suicides occur?

A

Due to the severe working conditions

93
Q

What does Apple now have as a result of the suicides of Foxconn workers?

A

A Supplier Code of Conduct

94
Q

Why does Foxconn still work with Apple?

A

It would be too expensive for Apple to change manufacturers.

95
Q

Where have many environmental criticisms come from?

A

Greenpeace

96
Q

What has Greenpeace produced?

A

A Green Electronics Guide

97
Q

What does the Green Electronics Guide do?

A

Rank companies on their environmental performance

98
Q

What was Apple criticised by Greenpeace for?

A

Its reliance on non-renewable energy
Use of toxic chemicals and brominated flame retardants
Chines factories discharging pollutants and toxic metals into the water system
Lack of recyclability of Apple products

99
Q

How did Apple respond to Greenpeace’s criticisms?

A

It launched a campaign known as Green My Apple

100
Q

What was the aim of Green My Apple?

A

To improve its green credentials

101
Q

How much of Apple’s energy usage is now renewable?

A

75%

102
Q

What has Apple invested in to power its data centres?

A

Solar farms

103
Q

What has Apple removed from its products in order to be more environmentally friendly?

A

PVC plastics and brominate chemicals

104
Q

What was Apple’s position on the Green Electronics ranking in 2006?

A

11th

105
Q

What was Apple’s position on the Green Electronics ranking in 2012?

A

6th

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