Apple TNC case study Flashcards
list the reasons for TNC growth
improvement in technology and transport cheaper labour flexible workforce encouragements from government cheaper land fewer environmental restrictions
after watching the apple documentary what were the key issues?
- poor working conditions and sanitation
- international
- long hours, poor conditions
- low standards
- no training
- illegal mining
- dangerous conditions
- breaching of rules
what is apple?
A US, TNC based in cupertino, northern california
background information about apple
- US TNC
- headquarters based in cupertino, northern california
- started business in 1976
- since 2000 has experienced phenomenal growth
- number one global brand by value
- 98,000 full time employees
spatial organisation of apple
- main products are designed in silicone valley, California and made in mainland china by foxcon
- products are sold worldwide but mostly in developed
- headquarters + research design centre are together on apple headquarters in cupertino
- 3 further data centres in the USA
- the main production centre is Foxconn in Foxconn city
production- apples 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
ireland cork
- only fully apple owned manufacturing facility in the world
- apple was lured to locate in Ireland because of the 12.5% corporation tax
positive aspects of apple in ireland
- employs 4000 workers
- presence in cork has now generated a further 2500 jobs
- company as contributed to infrastructural development in city
negative impacts of apple in
many of highly skilled workers are foreign so apple has been accused of not creating sufficient work for locals
tax practices
apple has been accused of avoiding corporate tax
apple uses subsidary firms in other countries in order to avoid tax
it was claimed apple had recieved favourable treatment of tax from irish government
environmental issues within apple
criticisms have mainly came from Greenpeace for…
- it’s reliance on non-renewable sources to supply energy
- use of toxic chemicals
- lack of recyclable products
china - working conditions
in 2006 is was reported 200,000 workers were working more than 60 hours per week earning less tha $100 per month
china - health and safety
in 2010 50 workers were poisoned with a toxic chemical
china - child labour
Foxconn use of children is part of its objective for a flexible labour force
china - suicides
10 suicides in 2009 brought damage to apple reputation
