Page 1

Business Today

Globalisation is a big part of the modern world and has an increasing impact on the way we live our lives. Over the last 20-30 years the world has become more and more interconnected. Countries, businesses and people from all over the world have spread and shared their ideas with each other and have become interdependent. Globalisation has allowed some companies to become trans-national corporations, often referred to as TNCs. Some examples of TNCs are Coca Cola, Nike, GAP, McDonalds, Samsung, Disney, Apple, Billabong, etc. These are all companies that operate producing and selling their products in many countries around the world. Apple, for example, is a wellknown company that sells electronics all over the world. It has changed the lives of many with its

amazing creations; like the iPod, the iPhone, the Mac, the iPad and so much more. Apple has brought the standards of technology to a very high level. Apple has opened numerous retail stores in several countries and its online store can be accessed from everywhere in the world. As of October 2011 there were 364 retail stores worldwide. The products are manufactured and assembled in China and designed in America. All of Apple’s products are distributed around the globe. Apple employs 60,400 people for a fulltime job and in addition 2,900 people for a part time job. . Apple’s revenue in 2011 was over $108 billion US dollars. Apple is a perfect example of a company that has taken advantage of the Internet to spread the word of their products round the globe. They use television to really capture people’s imagination and desire for their innovative products. They show the beautiful graphics to the world through television ads and advertisements on the Internet. Apple was started by Steve Wozniak and Steve Jobs. They started off as friends in high school and both had a great interest


in electronics. Steve Wozniak had been doing computer design for quite some time after dropping out of school, and in 1976 he designed a computer that was known as the Apple I. From that moment Apple became a very successful company that changed the world of technology. Many of Apple’s products have revolutionised the world of technology and the world in general. For example the iPod, a relatively simple product, has changed forever the world of music and the way people buy and listen to music. Similarly, the iPhone and the iPad have changed the mobile phone industry and the entertainment industry. Apple’s originality continues to push the world forward year after year.

Indirectly this is also beneficial for the public because they can get good quality products for less money. Another positive impact that globalisation has on Apple is standardisation. Wherever you go in the world, Apple still offers the same things. If you go to Argentina or China or Poland you are still going to find the same things that you would find in America, Australia or Japan. It isn’t based on how poor or rich the country is, it will always be offered equally to everyone all around the world. Globalisation has allowed Apple to give jobs to people in third world countries to make their products, and this is when cheaper labour comes into the picture. Since they give jobs to poorer countries they pay them very little and costs them

much less money than it would cost to pay workers in America. This is obviously a positive for Apple because it keeps their costs low (and profits high) However, some people believe that if Transnational Globalisation has had many positive impacts on Apple. For example producing products in countries where labour is cheaper creates higher profits for Apple. They spend less money to get the products made which allows them to sell the products for less money for the public, but still allows them to get higher profits.


Corporations didn’t give jobs to Less Economically Developed Countries then they wouldn’t be earning any money so by giving them these jobs at least they get paid some money. But the problem is the lack of justice and fairness. For doing the exact same amount of work and probably even more than what workers in richer countries would, they still get paid a lot less and their work conditions are much worse. According to the UK Daily Mail ‘Some Apple workers in China have to work 15 hours a day for as little as 27 Yuan a month.’ Though by giving these jobs to LEDCs it causes a loss of jobs in the more economically developed countries and this is damaging for the MEDCs citizens. Apart from the little pay for workers in the less economically developed countries the type of work is very different to a normal sweatshop. According to news.com ‘the problems are not the intensity and burnout and pressure-cooker environment you have in a garment factory ... its more a function of

monotony, of boredom, of alienation perhaps.’ This type of environment causes emotional and mental issues for those

who have come from rural areas to work. Being put into an environment completely different from a rural area is very extreme and the repetitive and “alienated” atmosphere is hard to take in.

Another benefit Apple has gained from Globalization is that it’s become such a big company that other companies find it hard to compete against it. For example Samsung has tried competing against Apple by creating an android phone, which is a touch screen phone with many of the same capabilities as an iPhone, but is still unsuccessful to top the iPhone. Apple’s success means many other companies try to copy their design and products.

Above is Apple’s head office, which is located at No. 1 Infinite Loop, Cupertino in California. This is where all the design and research happens.


Above is a map of where in the world Apple’s retail stores are found.

Foxconn is one of the many factories found in Taiwan that produces equipment for Apple. It has been at the centre of controversy related to the work condition of their employees. Over 300 million visitors a year visit Apple’s retail stores all over the world. Apple will continue to be an innovative but controversial company for many years to come.

Written By Martina Comastri And Alana Giardina

Apple martina Comastri and Alana Giardino  

Apple TNC

Advertisement