nike globalization facts

Thomas L. Friedman, author of The Lexus and the Olive Tree, describes globalization as a movement that enables individuals, corporations, and countries to reach around the globe farther, faster, deeper and cheaper than ever before. The world system can make sense of what is going on with Nike. Countries who want to draw this capital or FDI must adapt to the wishes of those who have the capital, and in this way they are pressurized to adapt their policies to the demands of the market, that is, those who hold the capital. To increase profit, MNCs can close or move its operations to a cheaper location, or threaten to gain concessions. Critics say that Nike is aware of these conditions for a long time and are clearly not controlling its contractors, turning a blind eye to these abuses for one simple reason: profit. ISSN: 2153-5760.

each of the countries involved offered various government incentives to get Nike to choose them over other economies, raw materials (rubber and cotton) are grown in these countries or nearby, the countries are close together, reducing transport costs, the countries are in a trade bloc, meaning that products can be transported between them without incurring import and export costs.

Nike develops the new invention in footwear, dress, and equipment. Its headquarters and mush of its research takes place in Beaverton, Oregon, in the USA. To make the products for Nike and superbrands to put their logo on, the free-trade or EPZs, such as that in China described above, emerged (Klein, 2000). As of 2012, it employed more than 44,000 people worldwide. Relocation can also have a domino effect on small local companies reliant on Mike employers to buy their goods or use their services and on farmers who rely on Nike to buy their raw materials. London: Sage Publications. This has had a multiplier effect by attracting other foreign TNCs. With the shift of production from the USA to economically developing countries, 4000 people lost their jobs in Oregon, resulting in lower levels of income and reduced living standards in the area. When she created the Swoosh, “Knight got the symbol that would revolutionize [Nike… She] got $35” (Feit & Surpuriya, 1997, p11). While other footwear companies still manufacturing their own shoes in high-cost countries such as Germany and the U.S. Retrieved 01 October 2009, from This paper explores the link between cultural identity and globalization through the lens of wine appellation regulations in the United States, with the American Viticultural Areas (AVAs), and in France, with Champagne. Growth. Chomsky, N. (1999). First, the world economy is one as global markets are replacing national markets. Factories making Nike products have been accused of expecting long working hours, using child labour and taking advantage of poor health and safety regulations. Inquiries Journal/Student Pulse 3 (12),, KAZI, T. B. This is because the average worker earns around $42 a month, or $500 a year. Tz-Han Chen (2008). Our team of exam survivors will get you started and keep you going. In Vietnam, Nike employs around 25,000 workers who produce over a million shoes each year. Thus, they tread warily, lacking clear and agreed-upon definitions of good corporate citizenship. (2001). Put in other words, as Goldman & Papson (1998) state: “Why take on the headaches of building manufacturing sites and organizing and maintaining a labour force, when it makes greater fiscal sense to subcontract the manufacturing process?” (p7). This is rather ambitious but some companies have stepped out their country’s borders and have gained global recognition.

This can lead to high unemployment and a decline in standards of living. Retrieved 01 October 2009, from Nike links many parts of the world. Report 1:  Footwear Industry Report ( Adidas/Reebok/Yeezy, Asics, Burberry, Fila, New Balance, Nike, Puma, Sketchers, VF Corp/Vans and Wolverine). New Jersey: John Wiley & Sons.

Crainer, S. & Dearlove, D. (2003). For example, a local catering company may be employed to feed workers, farms supply raw materials and local companies may supply component parts such as zips and laces. First, due to internationalization of capital markets and liberalization of capital flows, the suppliers of capital are the ones dictating financial markets, ‘making and breaking’ many governments and their countries. Finally, the number of corporations operating transnationally amounted to 53,000 in 1997 with 448,000 foreign affiliates. Nike is the personification of the product-free brand. Clair (2008) cites cases where 60 female workers were forced to run laps around the factory as punishment for not wearing the right shoes and many women fainted due to the heat and had to be hospitalized, while in another case dozen women were violently beaten on the head by a shoe, and in another case workers mouths were sealed with tape as penalty for talking while working.

Counterblast E-Journal of Culture and Communication, 1, 1-5. & Costello, T. (1998). USA: Kumarian Press & Berret-Koehler Publishers.

Furthermore, industries like Nike have led to and are typical examples of the deskilling of production: “the migration of shoe assembly jobs from one Asian nation to the next is only possible if the work of making shoes is deskilled” (Goldman & Papson, 1998, p12). Wages in China are still quite low compared with similar jobs in. In this way Nike was a brand, an idea and a lifestyle. New York: Routledge. Nike is the company which has 33% of the global market share in the athletic footwear industry. Compared to the paycheck of the Nike CEO, the inequality is shocking grotesque. The rubber for its trainers comes from Malaysia and Indonesia and cotton comes from Turkey, India and the USA. When asked why he said that Nike … He asked her to create a logo that would fit on the side of a shoe. In this paper I will attempt to summarize the paper (Locke, 2002) on Nike’s unethical international expansion. In the United States, Nike products are sold through about 22,000 retail accounts; worldwi de, the company's products are sold in more than 160 countries. �R>rj�!�2&�c����;j��;���s�w�+�4����O� R�����aE�8���Mo\�J�Jz��;q���BF]�/#x�5�E�y|u g�ݔ#�S��SŘ�"( P�=��j��G��'�'s+0R�I�r͊,w)*iyiP��?�Ǝ'j��;�(��-Zݣ�.�gT�r�� �'e�3c�����̊��xi�>,P��ݰ�i�Sq�{W�s��". It sells merchandise world-wide and is a global, well-known brand. London: Pluto Press. As one of the pioneers in foreign labor, Nike ran into a number of issues surrounding sweat shop, child labor and minimum wage wars.

This is, as Rose (1990) states, the basic alienation that lies at the heart of work: “Workers work because they have to, they work at the behest of others in a process they do not control, to produce goods or services they do not enjoy… work is made up of the elements of obedience, self-denial and deferred gratification” (p56).

Supervisors and managers are abusive to the predominantly female workforces who are ‘terrified’ to speak back as their meager wages will be cut if they do. So, even though factories in the EPZs do not pay taxes or create infrastructure, they are there because of the trickle-down theory: the belief that EPZs create jobs and workers income from these jobs will boost the local economy. (source). Nike has three main business segments: footwear, apparel, and equipment. TNCs such as Nike often improve infrastructure and communications and create a skilled and experienced workforce, which can encourage further investment in the country by other countries. Working Paper: Germany. Brecher, J.

Retrieved 01 October 2009, from Much of the profit generated by the company will not remain in China but will leak out and back to company headquarters in the USA. Nike: The Superbrand Superbrands such as Nike have been described as one of the central mediums of globalization and as symbols of a global economy. The new Nike wasn't simply about shoes and slam dunks, but about promoting a higher way of life.” (p4). The headquarters are based in Washington County, Oregon, USA. Despite most of the Western population owning at least one item made by Nike, there are many interesting facts which are relatively unknown. Nike has been under a lot of scrutiny about twenty years ago during a time of starting globalization on an enormous mass-production scale. In this drive and commitment Nike have come to represent the hollowed corporation, the embodiment of a globalized world.

The result for Nike was innovative ad campaigns, superstars like Michael Jordan, superstores like Nike Town, and corporate campuses such as the Nike World campus. Retrieved 1 October 2009, from DMR » Stats and Fun facts Pages » Clothing and Apparel Statistics and Fun Facts » NIKE Facts and Statistics.

Both domestically and overseas Nike operates retail stores, including Nike Towns and factory outlets. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). All this ultimately improves living standards. Journal of International Business Studies, 32, 383-400. H��Vˎ�6�����H� �8zX~d��fZ ��E7��%ZbGU���|}�%);%E�E��{�=�>�,��Nt�����۔Ҍ�Ǜ"]/S��;��@�����7?���]�l���Ä�%�w��tI?���j,��}��&^�,7�R�,�ț��L���^�7�'}"�豭�n�A�Tj3h#8���l�GI�'�H�� ?�4���O��6�4��F���*�@%�9�F'-�ZWI�r��m�F1꩑Fz\�ģltK������D_��,�u[);�{.鱯|0N�ߌ ����� b� 2"33�`ʯ����,ɿ�u�g��v���F��_��A>ۈ!���T��G�uԍ�S���p����}xNNW⼜��ɾ7��yu�4\I�ZĠa4v4� 7�Pف��K#K쟃e�,��:0\p��Lj�U_�88��2�ːΩQe�g�@Kv�fpգt%=�Y2MҨ�A����Fw�4q0ZTK�7��D��0�=/��#�DS���HY��K�\�V�|Ҳ�G��0g$��"�̑��V�u, ��TBT�;Vg�^=��\�����у|�� ��ݲ��[`���I�۩��m*���#�˵�;�`����Q�ԦAM�N���/��z�3�|�,��:U�����h�� $ſ�� Nike has been accused of not being able to set aside the bottom line – profit – for a moment, to consider the exploitation of mistreatment of the very workers that are getting them to the bottom line. Globalization is not positive for everyone.


We now communicate and share each other’s cultures through travel and trade, transporting products around the world in hours or days. The Ultimate Book of Business Brands: Insights from the World’s 50 Greatest Brands. USA: Seven Stories Press. Major companies have embraced the very successful Nike model, which is characterized by mass layoffs as necessary corporate strategy, and a prioritizing of the needs of the brand over the needs of workers. (adsbygoogle=window.adsbygoogle||[]).push({}).

The company has gone through several controversies including the child labor These brands constantly appear in the top half of all studies of the most powerful brands, with Nike in 2009 ranking 26th at a … Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) has grown to be the world's largest marketer of athletic footwear, holding a g lobal market share of approximately 37 percent. Working conditions are still not great in China compared to what they are in other countries. Knight was instrumental in breaking Nike away from Adidas and Reebok when he realized that importing shoes from other countries using cheap labour would allow them to challenge the market leaders.

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