Case study 6

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Nike In Vietnam. An Example of an MNC.

Nike In Vietnam.

An Example of an MNC.

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Social Issues

Advantages:

  • wages allow people to improve their quality of life
  • imporvements to local services, e.g: hospitals and schools

Disadvantages:

  • poor working conditions
  • local culture is lost, nike brand takes over
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Economic Issues

Advantages:

  • Pays higher than other local companies
  • Exporting Nike products encourages growth of the economy

Disadvantages:

  • Very often are no trade unions allowing the work force to be exploited
  • Demulitiplyer effect if Nike moves from vietnam to a cheaper and more suitable location 
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Environmental issues

-Lower saftey standards than MEDC's

-MNC's contribute to air and water pollution

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More Information

- 70% of the workforce of Nike are based in Asia

- Majority of workers are women under the age of 25.

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