Nike in Vietnam

Question 1

Where is Vietnam located?

Answer 1

Vietnam is located is located in South-East Asia. Some countries that border Vietnam are Cambodia and China. It borders the South - China sea and the Gulf Thailand.

Question 2

Facts about Nike

Answer 2

Nike was establish in 1972 by Philip Knight
Yearly revenue is $19.2 billion
Product in 140 countries
Contracts in 700 factories in 45 countries
It employs 800,000 people in its supply chain
Average pay in a Nike factory is $54 a month, 3 x the minimum wage.
More than 75% of the workforce is based in Asia.
Majority of workers are women under the age of 25.
Nike has 34 factories in Vietnam, 124 factories in China, 73 in Thailand and 35 in South Korea.

Question 3

4 potential benefits

Answer 3

Pays higher wages than most local companies
It contributes to the local tax base and helps pay for local/ improved infrastructure
Improves the skill base of local people
Helps create sustainable employment in Vietnam.

Question 4

4 potential disadvantages

Answer 4

The company image and its advantages help undermine national culture
Concerns about the political influence of Nike and other NMCs.
Investments can be quickly transferred out of Vietnam into other countries.
Many sweat shops and bad working conditions/