Development Flashcards
What was Nike’s annual net income in 2023?
$5.07 billion
What is Nike’s share of the global athletic footwear market in 2023?
28%
How many employees does Nike have worldwide?
83,700
How many retail stores does Nike operate?
1,032
What is the globally recognized symbol of Nike?
The Nike swoosh
What are the advantages of Nike’s global structure?
- Links many parts of the world, headquarters & much of its research is in Oregon, USA
- Finished goods are produced in 38 countries in 502 factories employing over 80,000 people
- Materials from 15 countries, mostly in Southeast Asia like Vietnam, Thailand, and China
- Finished products produced in countries like India and the Philippines - labor costs are cheaper
- Access to markets in Southeast Asia has expanded the wealth of Nike
How has Nike been more sustainable?
- In June 2023, they created the world’s first hydrogen-powered inland container vessel (H2 Barge 1)
- Sails between Netherlands and Belgium
What are the social negatives for developing nations because of Nike?
- Nike factories were accused of expecting long working hours, using child labor, and taking advantage of poor health and safety regulations
- In 2001, a BBC documentary showed child labor and poor working conditions in a Cambodian Nike factory, where six girls worked seven days a week, 16 hours a day
- Nine factories in Cambodia were being used to fuel brick kilns, exposing workers to toxic fumes
What are the environmental negatives for developing nations because of Nike?
- Environmental group Greenpeace published a report about water pollution impacting the Yangtze River emitted from a major textile factory operated by Nike
- In 2021, it was discovered that Nike and 50 other leading brands have multiple supply chain links to the largest Brazilian leather exporter JDS, which is known to cut down the Amazon by deforestation
What are the negatives for the USA because of Nike?
- In 2020, Nike laid off 700 workers in Oregon as part of a restructuring
- This resulted in a negative multiplier effect for the region
What are transnational corporations?
Companies that operate across and between different countries worldwide
What is globalization?
Increasing interconnectedness across the world through finance, trade, communication, technology, and tourism
What are the causes of globalization?
- Communication: video calls, social media, email, Internet
- Transportation: massive container ships, cheap available flights
- Free trade: EU, World Trade Organisation
- Labour availability and skills: China and SE Asia - population with improving education and infrastructure
Why do TNCs often manufacture in LEDCs?
- Reduced transport costs
- Access to a wider market
- Avoidance of quotas and tariffs and receive tax incentives
- Cheaper labor
- Work ethic so will work long hours
- Lack of health and safety makes it cheaper
- Lack of unions means workers don’t strike and don’t know their rights
- Less environmental control makes it cheaper
What are the advantages of TNCs to the country of origin (MEDC)?
- Money sent back to headquarters in country of origin so economy benefits
- Goods are cheaper to buy
- Spread the power of the MEDC abroad
What are the disadvantages of TNCs to the country of origin (MEDC)?
- Reduced local employment
- Deindustrialisation creates a negative multiplier effect
What are the advantages of TNCs to the host country (LEDC)?
- TNCs reduce unemployment by providing locals with jobs
- Raise living standards
- Cause economic growth
- Infrastructure is developed
- May attract other TNCs to set up in host country
What are the disadvantages of TNCs to the host country (LEDC)?
- Workers are exploited
- Environment is damaged
- Slows down the growth of LEDC industries
What is the primary sector?
- Farming, mining, fishing
- Extraction of raw materials from land or sea
- Mainly in LEDC
What is the secondary sector?
- Car manufacturing, food processing, oil refining
- Takes raw materials from primary sector and processes them into manufactured products
- Mainly in NICs
What is the tertiary sector?
- Health services, education, tourism, finance, sales, retail
- Also called service sector
- Involves selling services and skills
- Mainly in MEDCs
What is the quaternary sector?
- Research jobs, communication, tech jobs, social media
- Provides information services like computing, ICT, consultancy, research
- Increasing in MEDCs
What does MEDC stand for?
More Economically Developed Country
What does LEDC stand for?
Less Economically Developed Country
What does GNI stand for?
Gross National Income
What does GDP stand for?
Gross Domestic Product
What does HDI stand for?
Human Development Index
What is GNI or GDP?
Total amount of money produced by a country in a year
What is HDI?
Measures life expectancy, GDP per capita, mean years in school
What is development?
Process of a country improving or progressing (in relation to wealth, health, education, and living standards)
What is the correlation of life expectancy and GDP per capita?
- Positive correlation
- As life expectancy increases, GDP per capita increases
What is the correlation of birth rates and GDP per capita?
- Negative correlation
- As birth rates decrease, GDP per capita increases
What is the correlation of population and GDP per capita?
No correlation
What are the characteristics of MEDCs?
- Lower birth rate
- Lower death rate
- Lower infant mortality rates
- Higher literacy rates
- Higher GDP per capita
- Higher life expectancy
- Higher HDI
What are the characteristics of LEDCs?
- Higher birthrate
- Higher death rate
- Higher infant mortality rate
- Lower literacy rates
- Lower GDP per capita
- Lower life expectancy
- Lower HDI
What are NICs?
Newly industrialized countries, e.g., Brazil and India
What is birthrate?
Number of births per thousand per year
What is death rate?
Number of deaths per 1000 per year
What is infant mortality rate?
Number of children that don’t live past 1
What is literacy rate?
% of people over 15 who can read & write
What is life expectancy?
Average age an individual is expected to live
What are the physical factors limiting development?
- Extreme climate - makes growing crops hard - lack of food & malnourishment, accessing safe drinking water is hard
- Being landlocked - countries that have no access to sea - trade is hard
- Natural hazards - damage infrastructure & business
- Lack of natural resources (like gas/oil) - have little to sell & trade - no money earned
- Water quality - leads to diseases (like Malaria/ Cholera)
- Water supply - limits agriculture - if people are searching for and carrying water, can’t focus on other areas of the economy
What are the economic factors limiting development?
- Debt - can’t spend money on improving schools/hospitals
- Rapid population growth - have to pay for extra people
What are the social factors limiting development?
- Being landlocked - countries that have no access to sea - trade is hard
- War - consumes vital resources & diverts attention from healthcare, reliable food supplies, stability & clean water
- Unstable government - money spent on military weapons / wealthy lifestyle for leaders
- Colonisation - European countries (e.g., UK/France) controlled LEDCs - limits their development
What is DTM?
Demographic Transition Model - shows population change in development
