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Examine the mobility of modern economic activities referring to one Multinational Company (MNC) that you have studied. - Leaving Cert Geography - Question B - 2009

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Examine the mobility of modern economic activities referring to one Multinational Company (MNC) that you have studied.

Worked Solution & Example Answer:Examine the mobility of modern economic activities referring to one Multinational Company (MNC) that you have studied. - Leaving Cert Geography - Question B - 2009

Step 1

Naming MNC:

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Answer

For this examination, I will refer to the multinational company Apple Inc.

Step 2

Naming two mobility factors:

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Answer

  1. Labor Mobility: Apple Inc. has the ability to relocate labor depending on cost and skill availability, affecting production efficiency.
  2. Capital Mobility: The company is capable of moving its financial investments to regions with favorable tax conditions and regulations.

Step 3

Examination of mobility activities:

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Answer

Apple Inc. demonstrates significant mobility in its economic activities through:

  1. Global Supply Chain Management: Apple has established a sophisticated supply chain, sourcing components from various countries such as China, South Korea, and Japan. This allows them to take advantage of lower labor costs and specialized manufacturing expertise in those regions.

  2. Manufacturing Locations: Their primary manufacturing location is in China, where they utilize Foxconn and Pegatron for assembly. This mobility enables them to respond quickly to market demand and shifts in consumer preferences. Furthermore, Apple has also diversified some of its manufacturing to India, as part of its strategy to mitigate risks and adhere to local regulations.

  3. Research and Development (R&D): Apple operates R&D facilities in multiple countries, including the United States and Israel. This international presence ensures they harness global talent and innovations, allowing them to maintain competitive advantage.

  4. Market Accessibility: The company’s mobility also includes its ability to enter new markets. For instance, Apple has expanded its operations and product availability in emerging markets such as India and Brazil, adapting its products to meet local demands.

In conclusion, Apple Inc.'s economic activities exhibit high mobility, driven by factors such as labor and capital mobility, allowing it to sustain its leadership in the global market while optimizing costs and R&D innovations.

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