Case Study - Multinational Companies

Nike in Camodia and Vietnam

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  • Created by: Jessica
  • Created on: 22-04-12 14:07

Camodia

Why operating here? - Sub contracting - gives contract to local textile firms to produce for them - keeps costs down. Can move production easily if costs go up.

Benefits to countries - Female employment.

Problems in countries - 4 to a rooom (rent home), 7 days a week work (3 refusal - fired), overtime is forced (6:15 am till 10:15 pm), £8 per week (legal minimum) & child labour under 14.

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Vietnam

Benefit to countries -

  • $54 month compared to $18 legal minimum,
  • Good enviroment,
  • Breaks,
  • Free meals,
  • Training & new skills,
  • Stable income - higher pay than farmers,
  • Local factory owners adapting to new technology,
  • More jobs - higher wages,
  • Afford to spend child to school.
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