Nike and China (1)

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  • Nike and China (1)
    • 2012- new centralised campus for Nike's employees in Shanghai China
    • Nike first decided to locate in Asia in 1980
    • They had 170 factories and 272,000 workers
    • advantages  for Nike
      • cheap labour
        • Wages are low in China- 50p per hour
      • Cheap land and services
        • land for factories is less expensive than in the USA, as are electricity and transport
      • Lower taxes
        • Government charges lower taxes and rates to MNC
      • Fewer worker rights
        • less protection for workers in China
          • not allowed to join unions, holidays or have sick pay
            • saves Nike money and gives them flexibility in hiring and firing staff
      • Fewer environmental laws
        • Government does not apply the same environmental laws as in MEDCs
      • Access to the global market
        • Nike can transport their goods in bulk which keeps the cost of transport down
    • 600 contact factories that employ more than 800,000 workers in 46 countries
    • 700 shops and offices in 45 countries

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