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- IGCSE Geography Revision Notes >
Theme 3: Economic Development
Case Study: Nike
Pro impacts:.
- substantial employment
- pays slightly higher than other countries
- Improves skills
- Contribution to local tax will give the government opportunities ie improving infrastructure
- trade of unions able to protect workers
Con impacts:
- child labour
- poor working conditions
- sexual and verbal abuse
- the exploitation of the environment and pollution. As there is a huge demand for water
- wage below minimum wage
Positive impact for Nike and US:
- Cheap labor and manufacturing
Negative impact for Nike and US:
- company image negatively impacted
- doesn’t manufacture in the US so there is a loss of jobs and negative implants of balance of payments
- trade unions complain due to poor working conditions
Ways in which Nike fixed their image:
- by boycotting and protesting by the public Nike had to change its image
- they became transparent and publicly addressing the issues and labor practices
- improved working conditions (improved oversight and made sure they had clean air)
- Nike also raised the minimum wage up
Nike TNC image Background:
- Two decades ago the country was under major fire for abusive labor practices after outsourcing labor overseas because it was cheaper.
- The public was shocked over Indonesian Nike workers earning as little as 1/4 cents an hour. Disturbing allegations of abuse included stories that a Vietnamese sub-contractor ran women outside until they collapsed for failing to wear regulation shoes. Customers staged embarrassing public protests at the olympics and at Nike stores. People began boycotting the brand in droves.
Nike Basic Facts:
Headquarters –
- Beaverton Oregon, US
Location of manufacturing –
- Almost all Nike shoes are manufactured outside of the United States. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide. Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world wide.Nike is hesitant to disclose information about the contract companies it works with.
Global revenue –
- In 2020, Nike’s global revenue amounted to about 37.4 billion U.S. dollars.
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- Nike: a TNC
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This article uses Nike as a case study of globalisation and looks at the social and economic impacts of industrial development by TNCs
- Volume 24, 2012/ 2013
- Globalisation
- Human Geography
- People and the Environment
Alexander Cooke
Nike is a transnational corporation (TNC) founded nearly half a century ago. It is world famous for its trainers and sportswear, which feature the globally recognised ‘swoosh’ symbol.
Globalisation occurs as more connections are made between countries through trade and communications. It can bring wealth but it also causes inequalities.
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IMAGES
VIDEO
COMMENTS
Explore Nike's journey through ArcGIS StoryMaps, showcasing the power of maps to tell impactful stories.
Nike has emitted 14 million metric tonnes of carbon dioxide, Nike aims to reduce their carbon footprint by innovating in low impact materials. Why has Nike previously been in the firing line of ethical production issues?
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Nike is a large transnational corporation headquartered in Oregon that employs over 700,000 contract workers in 700 factories worldwide, more than 75% located in Asia where labor costs are lower.
Nike's problems and solutions Like other TNCs, factories making Nike products have been accused of paying low wages, expecting workers to work long hours, not providing sufficient training, having poor and unsafe working conditions and allowing supervisors to abuse workers.
In this IGCSE Geography Revision Guide, you'll find high-quality notes on Case Study: Nike and Past Paper Questions.
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Nike is a transnational corporation (TNC) founded nearly half a century ago. It is world famous for its trainers and sportswear, which feature the globally recognised ‘swoosh’ symbol. Globalisation occurs as more connections are made between countries through trade and communications.
Geography EOY y9 revision - Globalisation case study - Nike Learn with flashcards, games, and more — for free.