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GCSE Geography Case Studies > Nike Vietnam > Flashcards

Nike Vietnam Flashcards

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1
Q

What does Nike mean in English?

A

Victory

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2
Q

What language is Nike from?

A

Greek

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3
Q

How many contract workers worldwide does Nike employ?

A

650,000 contract workers worldwide

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4
Q

How many Nike factories are there worldwide?

A

700 factories worldwide

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5
Q

Where is the majority of nikes workforce and what is the %?

A

75% of Nikes workforce is in Asia

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6
Q

What is the demographic for the majority of Nike workers?

A

Women under 25

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7
Q

What is Nikes minimum age for making clothes?

A

16 for making clothes

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8
Q

What is Nikes minimum age for making shoes?

A

18 for making shoes

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9
Q

What is Nikes minimum wage?

A

£54 per month

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10
Q

Is Nike higher or lower than vietnams average minimum wage?

A

Much higher

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11
Q

When was Nike founded?

A

1972

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12
Q

How many more times pay does a Nike worker earn than a farmer?

A

Nike worker earns 5x more money than a farmer

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13
Q

In what yet did Vietnam outlaw child labour?

A

1988

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14
Q

How many children did the law against child labour prevent from working?

A

Law prevented 2.2 million children from working in 10 years

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15
Q

What is a consequence of vietnams minimum wage rising?

A

People can pay for better education so their children can get better jobs so taxes can increase and the country can develop even further

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16
Q

What is vietnams national average minimum wage?

A

£18/19 per month

17
Q

What percentage of Nike workers are female?

A

83% female

18
Q

In which year were 37 women forced to walk around the factory in high temps for wearing the wrong shoes to work?

A

1997

19
Q

What happened in 1997?

A

37 women were forced to remove their shoes and walk around all day in the very high temperatures barefoot because they wore the wrong shoes

20
Q

Where is Nike headquarters?

A

Oregon, USA

21
Q

Who is Nikes CEO?

A

Mark Parker

22
Q

What is Nikes CEO’s yearly salary?

A

£1.55 million

23
Q

What was Nikes CEO’s bonus last year?

A

£16.8 million

24
Q

How many workers for Nike are in Asia?

A

350,000 Asian workers

25
Q

Name two other countries where Nike have factories

A
  • Cambodia

* Indonesia

26
Q

Where is Nikes research centre?

A

Oregon, USA

27
Q

What type of employment is each of: HQ, research centre and manufacturing?

A

HQ: tertiary
Research: quaternary
Manufacturing: secondary

28
Q

Why did Nike move their factories from South Korea and Taiwan after the 1970’s?

A

Vietnam were less developed so they had lower wages

29
Q

Which 2 things meant Nike could take advantage of Vietnam and their workers?

A
  • Vietnam had no protective labour laws so no ones job was guaranteed
  • weak environmental laws so they didn’t need to take care of the environment
30
Q

Name 3 reasons Nike located in Vietnam, an LEDC

A
  • endless supplies of cheap labour
  • land for factories in LEDC’s is much cheaper
  • LEDC governments encourage TNC’s to go there so their economy can grow by providing jobs etc
31
Q

What can governments offer to encourage TNC’s to come to their country?

A

Tax incentives

32
Q

Market wise, why did Nike choose to locate in Vietnam?

A

There is good access to new global markets in South East Asia, especially China. As China becomes richer they will spend more money on Nike products. Also there is good transport links

33
Q

Name 8 positive impacts of Nike in Vietnam

A
  • creates lots of jobs in Vietnam
  • pays higher than minimum wage
  • improves skills of local people
  • attracts other MNC’s as well
  • Nike exports are profitable for balance of payments
  • sets new standards in other factories, how to be treated, how to be successful etc
  • contributes to local taxes, improves infrastructure
  • beneficial for Nike and Vietnam as it decreases unemployment levels
34
Q

Name 7 negative impacts of Nike in Vietnam

A
  • no security of employment
  • wages are still low
  • Tae Kwang Vina factory forces workers to work overtime
  • verbal and physical abuse of workers
  • Nike ignore environmental regulations
  • company image undermines national culture
  • concerns about political influences of Nike
35
Q

What does Nike in Vietnam lead to?

A

The positive multiplier effect

36
Q

Name 4 reasons why Nike outsource manufacturing

A
  • people willing to work longer hours as they need the money
  • bigger workforce as there are more unemployed
  • enthusiasm for simpler things as they don’t know anything else
  • cheaper labour as they can’t fight for anything more, they take what they can get
37
Q

How many plants are located in Vietnam?

A

34

GCSE Geography Case Studies (12 decks)

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