A multinational company in an LEDC/NIC - Nike in Vietnam

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Background - where is Vietnam?
Vietnam is a thin country in south east asia. south of china, and east of thailand.
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Background - where is Nike's HQ?
Nike's HQ is based in Beaverton, Oregon, USA
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Background - what does LEDC and NIC stand for?
LEDC mean less economically developed country, NIC means newly industrialised country.
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Advantages for Vietnam - the nike factory in Vietnam created a multiplayer effect, what is this?
Multiplayer effect is where a new business opens creating higher demand for a range of products and services allowing more businesses to move to the area. As more and more businesses arrive so do more and more consumers creating a multiplying market.
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Advantages for Vietnam - in total how many jobs to multinational companies (MNC's) provide for the people of Vietnam?
In total MNC's provide 750,000 jobs to the people of vietnam.
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Advantages for Vietnam - how have the jobs provided by MNC's including Nike increased quality of life for the vietnamese people in general?
corporation tax and income tax from the business has been collected by the government allowing them to improve infrastructure, education, and healthcare as well as other public sector services.
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Advantages for Vietnam - how has Nike improved the quality of life for its workers?
the income the job provides them with is higher than the wages of other local companies and allows them to supply for their familiy. it also improves their skills improving their job prospects for the future.
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Disadvantages for Vietnam - what do many people argue that Nike are exploiting? what sex and age are the majority of their workforce?
Many people argue that Nike is exploiting the cheap labour in Vietnam. For example the majority of their workforce are females under the age of 25.
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Disadvantages for Vietnam - what do some people say the MNC's including Nike are doing to the Vietnamese culture?
Many say the MNC's are taking over too many factories and forcing many local businesses to close down because of the loss of trade and the loss of a cheap available workforce. so many local cultural businesses are unable to run any more.
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Disadvantages for Vietnam - Many people think that in a few years MNC's i.e. nike will move out of Vietnam to a country with even cheaper labour, what could this mean for Vietnam?
this could leave Vietnam with a high number of unemployed workers and not enough local businesses to re-employ them
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Disadvantages for Vietnam - MNC's have large political influence over the government, why is this a problem?
This makes it easy for the companies to exploit the government and its people and get away with it as they can threaten to leave the country if there are any problems or if the gov. don't give them more money.
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Advantages to the USA - why will Nike's expansion be good for all American citizens?
Nikes expansion will mean that the american government can collect higher corporation tax from the business and spend this money on public services, for example schools, hospitals and maintenance of public areas.
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Disadvantages the USA - what does cheaper competition mean for american workers and manufacturing companies?
american companies will be forced to close due to lack of business and their staff will be made redundant and so will be unemployed.
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Disadvantages the USA - Some say there will be many strikes as manufacturing travels abroad and people loose their jobs. what effect could this have on consumers?
consumers could experience a temporary lack of goods and services and taxes may go up to cover the costs of the unemployment benefits.
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Other cards in this set

Card 2

Front

Background - where is Nike's HQ?

Back

Nike's HQ is based in Beaverton, Oregon, USA

Card 3

Front

Background - what does LEDC and NIC stand for?

Back

Preview of the front of card 3

Card 4

Front

Advantages for Vietnam - the nike factory in Vietnam created a multiplayer effect, what is this?

Back

Preview of the front of card 4

Card 5

Front

Advantages for Vietnam - in total how many jobs to multinational companies (MNC's) provide for the people of Vietnam?

Back

Preview of the front of card 5
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