A-Level Global Systems Case Study- Apple: A TNC

What is 'silicon valley'?

A nickname for an 'agglomeration' region in north california associated with high-end electronics industries.

What has apple done to try and improve standards in its Chinese assembly plants?

A supplier 'code of conduct' and regular audits of factories.

What is 'Foxconn city'?

China's equivalent to silicon valley; a self contained enormous complex in Shenzen with dormitories, shops and cafes for 4000,000 workers to live on site, producing electronics.

What has Apple been accused of not paying by the US and the EU?

Corporate tax; using subsidiary firms in other countries to declare profits and pay a lower rate of tax.

Where are apple products consumed?

Developed countries- the US- 44% of products. Mostly young, wealthy and educated. Rapid growth now in the Asia-Pacific region.

Why has apple been motivated to make improvements?

Driven by demand from consumers for ethical products.

Why did Apple chose to locate its European headquarters in Hollyhill, Ireland?

Government had very low (12.5%) corporation tax.

Where is Apple Inc. from?

Headquarters are in Cupertino, northern California.

Where does apple operate?

Headquarters in California, USA, European headquarters in Ireland, assembly of products in China.

Where are most of apple's employees located?

In the developed world, this reflects the high end, knowledge intensive nature of its business.

How does Apple get its products manufactured and assembled?

It outsources production to a Taiwanese company, Foxconn. Foxconn further subcontracts work to other component manufacturers.

Why would apple locate production and assembly in China?

Large highly skilled, hardworking and low paid workforce Lots of competition for the contract (forced down prices) Shenzen is a 'Special Economic Zone'.

What has been a negative impact of Apple in Cork

Many jobs are not for locals but for very specialist skills attracting economic migrants from overseas?

Why is apple an important TNC?

Number one global brand by value (US$145 billion) Second largest IT company by revenue, 2014- 11th largest TNC.

Where are apple retail stores?

Of the 453 stores, 110 are in Europe and the Middle East and 25 are in China; apple plans to open more in China.

How many people does apple employ?

Over 98,000

What have been the issues with China's labour practises?

Poor working conditions, long working hours, health and safety issues, student and child labour, suicides in 2009 and 2010.

What has been the positive impact of Apple in Cork?

Provided employment for 4,000 workers and had a multiplier effect in the region attracting more technology firms- this all contributed to Apple as a 'Celtic tiger' firm.

What have been the criticisms of apple's environmental credentials?

Reliance on non-renewable energy, use of toxic chemicals (BFR's) and PVC, discharging of pollutants into watercourses, origin of raw materials from illegal mines, lack of recyclability.

How has apple tried to improve its environmental credentials?

The 'Green my Apple' campaign; improved ranking in 'green electronics' from 11th to 6th place.

What work is carried out at the headquarters?

research and development, customer support, online call centres.