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Extrait sur la compagnie : APPLE (texte en anglais)

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Multinational companies in a global world : the example of APPLE

Apple is a multinational company combining innovation and success has been for several years on the fore. With ever more innovating products, the company seduces more and more. We have two sources, source 1 is a table dealing with apple iphone 3g's major components, its prices, where it come from and the company that produces it while the second source is an extract from an article written by Charles Duhigg and Keith Pradsher for the New York Times. So, following the guideline we will investigate on the following question at stake :

In what ways can APPLE be considered as a multinational in a global world ?

First of all we are about to see how is Apple a multinational company, then we'll treat of its place in the global world.

I Apple, a multinational company

1) doc 2 « Made in the U.S.A. is no longer a viable option »

Headquarter at Cupertino, Silicone Valley

Thriving profits, significant margins

Not enough profit, 400,000$/employee in 2009

178 billion dollar cashpile in 2015.

2) Foxconn : a subcontractor

Employees are paid 20% above the minimum legal wages but it's not enough for them to afford to their basics needs. There had been several riots and suicides because of it.

In 2010 Steve Jobs, chief executive of Apple, said that the suicide rate at the Chinese factory was lower than the overall suicide rate for the United States. In Chineses factories … where 400,000 employees have killed themselves in 2010.

3) Apple's tax avoidance

Apple use legal methods to modify an its financial situation in order to lower the amount of income tax owed. This is generally accomplished by claiming the permissible deductions and credits. This practice differs from tax evasion, which is illegal.

Apple has an Irish holding company with no operations or employees at the top of its foreign operations. This company also serves as a group finance company. Apple Inc., the U.S. parent of the whole group, pays U.S. tax on the investment earnings of this company. Otherwise, the holding company pays no tax to any government, and has not paid tax for five years. It claims tax residence nowhere.

II A global world

1) Emerging economies

Globalization, relocation

2) Subcontractors and outsourcing

Apple company is involved in a large-scale project. However, companies rarely does all the work. The work that remains is performed by subcontractors, who are under contract to Apple. Apple does not own any factory, they has only subcontracts with factories.

doc 1 : Japan, Korea, Germany, US are involved into iPhone's production

3)

Increased communication a wealth in developing countries also creates new markets for TNCs to tap. In addition to this the mix of

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