Nike Vietnam Flashcards
What does Nike mean in English?
Victory
What language is Nike from?
Greek
How many contract workers worldwide does Nike employ?
650,000 contract workers worldwide
How many Nike factories are there worldwide?
700 factories worldwide
Where is the majority of nikes workforce and what is the %?
75% of Nikes workforce is in Asia
What is the demographic for the majority of Nike workers?
Women under 25
What is Nikes minimum age for making clothes?
16 for making clothes
What is Nikes minimum age for making shoes?
18 for making shoes
What is Nikes minimum wage?
£54 per month
Is Nike higher or lower than vietnams average minimum wage?
Much higher
When was Nike founded?
1972
How many more times pay does a Nike worker earn than a farmer?
Nike worker earns 5x more money than a farmer
In what yet did Vietnam outlaw child labour?
1988
How many children did the law against child labour prevent from working?
Law prevented 2.2 million children from working in 10 years
What is a consequence of vietnams minimum wage rising?
People can pay for better education so their children can get better jobs so taxes can increase and the country can develop even further
What is vietnams national average minimum wage?
£18/19 per month
What percentage of Nike workers are female?
83% female
In which year were 37 women forced to walk around the factory in high temps for wearing the wrong shoes to work?
1997
What happened in 1997?
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
Where is Nike headquarters?
Oregon, USA
Who is Nikes CEO?
Mark Parker
What is Nikes CEO’s yearly salary?
£1.55 million
What was Nikes CEO’s bonus last year?
£16.8 million
How many workers for Nike are in Asia?
350,000 Asian workers
Name two other countries where Nike have factories
- Cambodia
* Indonesia
Where is Nikes research centre?
Oregon, USA
What type of employment is each of: HQ, research centre and manufacturing?
HQ: tertiary
Research: quaternary
Manufacturing: secondary
Why did Nike move their factories from South Korea and Taiwan after the 1970’s?
Vietnam were less developed so they had lower wages
Which 2 things meant Nike could take advantage of Vietnam and their workers?
- 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
Name 3 reasons Nike located in Vietnam, an LEDC
- 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
What can governments offer to encourage TNC’s to come to their country?
Tax incentives
Market wise, why did Nike choose to locate in Vietnam?
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
Name 8 positive impacts of Nike in Vietnam
- 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
Name 7 negative impacts of Nike in Vietnam
- 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
What does Nike in Vietnam lead to?
The positive multiplier effect
Name 4 reasons why Nike outsource manufacturing
- 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
How many plants are located in Vietnam?
34
