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Core Periphery Model Notes IB GEOGRAPHY

The document discusses Core-Periphery model by Friedmann and its four stages of development. It also discusses advantages and disadvantages of TNCs investing in peripheral countries. An example case study of Apple in Taiwan is provided, detailing its supply chains and labor issues with suppliers like Pegatron and Foxconn in Taiwan.

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116 views2 pages

Core Periphery Model Notes IB GEOGRAPHY

The document discusses Core-Periphery model by Friedmann and its four stages of development. It also discusses advantages and disadvantages of TNCs investing in peripheral countries. An example case study of Apple in Taiwan is provided, detailing its supply chains and labor issues with suppliers like Pegatron and Foxconn in Taiwan.

Uploaded by

bcdlc1691
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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‭Core-Periphery model‬‭(Friedmann)‬

-‭ ‬ ‭ ased on a study made in Venezuela from the 60s‬


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‭-‬ ‭4 stages of development: Pre-industrial, traditional, industrial, post-industrial‬
‭-‬ ‭Core comprises of HICs and MEDCs→ Manufactured goods and services‬
‭-‬ ‭Periphery: LICs, MICs→ Commodities‬

‭Draw this!! Up to 2 marks in EQ‬

‭ NCs in peripheries (to bring them into the core) - Ponte, China is no longer in the periphery,‬
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‭UAE‬
‭Countries that are stuck in the periphery: Lesotho, Malawi (Sub-saharan Africa)‬

‭Advantages for host country‬ ‭Disadvantages‬

‭-‬ I‭nvestment funds to move to country,‬ ‭-‬ ‭ ow skilled, low paying job opportunities‬
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‭multiplier/‬‭ripple effects‬‭(Hotel example: hotel‬ ‭predominate (factory and manufacturing)‬
‭sets in a local beach, demands construction,‬ -‭ ‬ ‭Profits are expropriated (back to HQ country)‬
‭food)‬ ‭-‬ ‭Older tech is often used to keep best at home‬
-‭ ‬ ‭Employment opportunities‬ ‭country, prevent accidents and I.E‬
‭-‬ ‭Local currency sees itself benefitted, attracting‬ ‭-‬ ‭May restrict trade union rights (org that fights‬
‭other TNCs‬ ‭for workers’ rights), finding countries w lower‬
‭-‬ ‭New technologies/administration brought in‬ ‭protection.‬
‭(Ex. McDonalds- staff book outlining the tasks,‬ ‭-‬ ‭Low levels of env legislation- allow them to emit‬
‭maintain a min standard, better administration)‬ ‭more than in home country‬
‭TNCs to China:‬‭1 member of CCP on the‬
‭board, industrial espionage (I.E) of new tech‬
‭and admin‬
‭Apple IN TAIWAN‬‭Case Study (Copy paste)‬

‭ pple is a software, online services, and electronics company. They were founded in the US‬
A
‭in 1976 and have had exponential growth in sales and popularity ever since.‬
‭-‬ ‭HQ in Cupertino, California (USA)‬
‭-‬ ‭$2366.7 billion in net worth‬
‭-‬ ‭154,000 employes worldwide‬

‭Supply chains‬

‭ pple mostly supplies and outsources from Asia- China and Taiwan specifically. According to‬
A
‭Steve Jobs, this is because factories in Asia have more flexibility and efficiency when it‬
‭comes to labor and production, making it convenient for Apple to include them in their supply‬
‭chain.‬

‭ ome of their most important suppliers are Pegatron and Foxconn, Taiwanese companies.‬
S
‭These companies manufacture their products such as iPhones and iPads at a lower cost‬
‭with better quality AND quantity.‬

‭ abour issues (Taiwan): low wages, overwork, excessive hours, unsafe working conditions.‬
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‭Although Apple has available solutions, like increasing wages for demanding high-tech‬
‭workers, this will increase production cost and reduce profits. Or moving to other Asian‬
‭countries like Vietnam or the Philippines, but suppliers would have to be changed which‬
‭demands more expenses.‬

‭Increasing market share‬

‭Reasons for supplier/outsource increase‬

‭-‬ ‭ isk Diversification- in case of instability, other suppliers can act in reaction to‬
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‭disruptions and inconveniences. Flexibility and adaptability‬
‭-‬ ‭Capacity Management- Due to the increasing demand especially in India and China,‬
‭production must be increased to meet the demand.‬
‭-‬ ‭Margins Sustenance- Leverage bargaining: maintain the low cost and high level of‬
‭profitability.‬
‭-‬ ‭Supplier Innovation- New suppliers invest more to gain trust and Apple benefits from‬
‭this internal one-upping.‬

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