Nike and China (1)
- Created by: ofields755
- Created on: 08-03-15 20:28
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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
- not allowed to join unions, holidays or have sick pay
- less protection for workers in China
- 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
- cheap labour
- 600 contact factories that employ more than 800,000 workers in 46 countries
- 700 shops and offices in 45 countries
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