Glob: Nike TNC Flashcards
1
Q
Where are the headquarters?
A
Beaverton, Oregon, USA
2
Q
How many employees and factories worldwide?
A
700,000 employees
700 factories
3
Q
Factories?
A
124 in China 73 in Thailand 35 in South Korea 34 in Vietnam 75% of work force in Asia
4
Q
Costs?
A
18$ to make a shoe -11$ material -2$ labour -4$ other Sold to retailers for 36$ Sold my retailers for 72$ average
5
Q
Expansion
A
Mid 2003 Nike paid $305 million to buy converse
TNCs grow by acquiring other businesses
6
Q
Impacts on host country? Positive
A
- Substantial employment in Vietnam
- higher wages than local companies
- improved skills of locals
- contributions to tax helps local infrastructure
7
Q
Impacts on host country? Negative
A
-found to suffer from sexual and verbal abuse (Jakarta)
-compulsory overtime
-child labour
-company image may undermine country culture
Huge demand on water and fuel
8
Q
Impacts on country of origin?
A
+positive employment impacts to develop high skill level marketing
+direct and indirect contributions to tax base
- not manufacturing there so loss of jobs
- trade unions complain over uneven playing field because of difference in LEDC and MEDCs working conditions
9
Q
Future?
A
In 1993, Nike setup reuse-a-shoe program
Benefits the environment and community
