Please enable JavaScript.
Coggle requires JavaScript to display documents.
Apple (TNC) - Global Systems and Governance - Coggle Diagram
Apple (TNC) - Global Systems and Governance
Location
HQ - Cupertino, California, USA (HIC)
The core of its research and development, marketing, and overall decision-making processes
Opperations
Design
- USA (Cupertino)
Manufacturing
- Mostly in China (Foxconn in Shenzhen)
Assembly
- Asia-based, especially China & India
Sales & Distribution
- Global, with Apple Stores in over 25 countries
Supply Chain
- Complex & international; includes South Korea, Japan, Germany, etc.
Impacts
Positives -
Jobs created in LICs/NEEs (e.g. Foxconn)
Tech & infrastructure investment
Tax revenue for host countries (e.g. Ireland)
Negatives -
Poor working conditions (Foxconn suicides 2010)
Environmental issues (e-waste, resource use)
Tax avoidance criticism (offshoring profits)
Globalisation Links
Apple is a leading example of economic globalisation, with production and supply spread across multiple continents
It uses outsourcing and offshoring to reduce costs and improve efficiency
The company adapts products and services to local markets – a process known as glocalisation (McDonalds - McBurrito)
Apple’s global brand represents cultural globalisation, influencing consumer behaviour and lifestyles worldwide
Ethical Issues
Apple has been criticised for labour exploitation in overseas factories, particularly in China
The company has used tax avoidance strategies by shifting profits through complex structures, especially via Ireland (Low corporation tax)
Apple’s heavy reliance on Chinese manufacturing exposes it to geopolitical risks such as trade tensions and global supply chain disruptions
Environmental Issues
Following criticism of its practices from Greenpeace in the 200s, Apple responded with a “Green my Apple” campaign.
Uses 100 % renewable energy in its facilities in the US
Created Apple energy - from Solar Power
Removed all PVC plastics from its products
Promotes recycling of its products
Tarrifs
Apple has been caught in the crossfire of the trade war between the US and China. This imposes heavy tariffs on Chinese imports to the US, meaning Apple has to pay for importing its products back to its main market in the US.
As of May 2025, the United States has implemented a 90-day reduction in tariffs on Chinese imports, lowering rates from 145% to 30%.
Apples Importance
Employs over 18,000 people directly and over 1 million involved in making, supplying and selling the products
In 2014 Apple sold 74.5 million iPhones and £11.8 billion in quarterly profits, with net cash reserves being £93 billion
Has highly skilled workers in the quaternary sector e.g. computer scientists