TNC Case Study - Nike

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Background Info
Nike is an American TNC that is engaged in the design, development, manufacturing and
worldwide marketing and sales of footwear, apparel, equipment and accessories
The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman
and Phil Knight,and officially became Nike, Inc. on May 30, 1971
The company went public in the 1980's and Nike successfully profited 50% of the market
share in the United States
Nike pays top athletes in many sports to use their products and promote and advertise their
technology and design
Revenue: $30.6bn
Where? (Structure, Spatial Distribution)
Nike's global headquarters is located in Beaverton,
Oregon, USA.

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Nike employs more than 700,000 contract workers in over
700 factories worldwide.
The list includes 124 plants in China, 73 in Thailand, 35 in South Korea and 34 in Vietnam s)
where labour costs are lower than in MEDCs
More than 75% of the workforce is based in Asia
In mid2003 Nike paid $305 million to acquire retro shoemaker Converse.…read more

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Impacts
Host Country
Outsourcing creates substantial employment in
Vietnam which will help to improve the skills
base of the local population.
Exports are a positive contribution to the
balance of payments and the contribution to
local tax helps pay for new and improved
infrastructure.
Workers at nine Nike plants in Indonesia
(including Jakarta) have been found to suffer from sexual and verbal abuse, lack of
medical attention and compulsory overtime.
Suspicions have been raised over the use of child labour.…read more

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