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With reference to one multinational company that you have studied, describe and explain any two of the following: ➢ Sourcing of raw materials and components ➢ Location of processing units ➢ Location of markets. - Leaving Cert Geography - Question B - 2014
Question B
With reference to one multinational company that you have studied, describe and explain any two of the following: ➢ Sourcing of raw materials and components ➢ Loc... show full transcript
Worked Solution & Example Answer:With reference to one multinational company that you have studied, describe and explain any two of the following: ➢ Sourcing of raw materials and components ➢ Location of processing units ➢ Location of markets. - Leaving Cert Geography - Question B - 2014
Step 1
Sourcing of raw materials and components
Answer
One notable multinational company is Apple Inc., which sources raw materials and components from various countries. For instance, Apple sources cobalt from the Democratic Republic of the Congo, which is essential for lithium-ion batteries found in their devices. Furthermore, components like semiconductors are sourced from Taiwan and South Korea, reflecting a strategic approach to ensure high-quality materials while minimizing production costs. By diversifying its suppliers, Apple mitigates risks associated with supply chain disruptions.
Step 2
Location of processing units
Answer
Apple has strategically located its processing units primarily in countries like China, where facilities can take advantage of the local workforce and manufacturing capabilities. The company's assembly plants in Shenzhen are pivotal in the production of devices, leveraging a network of suppliers nearby. This proximity allows for rapid assembly and shipping, thus minimizing lead times and costs. Furthermore, the integration of advanced manufacturing techniques in these facilities enhances overall efficiency.