Nike

Nike as a TNC

• Global headquarters located in Beaverton, Oregon, USA
• employs more than 700,000 contreact workers over 700 factories worldwide.
• 124 plants in China, 73 in Thailand, 35 in South Korea and 34 in Veitnam.
• more than 75% of the workforce is based in Asia.

Figures:

• contractors are paid an average of $18 a shoe by Nike - $11 for materials, $2 for labour, $4 for additional costs and $1 for profit
• Nike sells the shoes to retailers for $36.

Expansion:

• In 2003, Nike paid $305 million to acquire reto shoemaker converse. 

Positive impacts on host:

• outsourcing creates substantial employment in veitnam
• Nike pays (slightly higher wages than local companies
• improves the skill base of the local population
• the success of…