We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Mini Case: Nike

Categories Brands, Business, Company, Manufacturing

Essay, Pages 2 (326 words)



Essay, Pages 2 (326 words)

Mini Case: Nike’s Decision Nike, a U. S. -based company with a globally recognized brand name, manufactures athletic shoes in such Asian developing countries as China, Indonesia, and Vietnam using subcontractors, and sells the products in the U. S. and foreign markets. The company has no production facilities in the United States. In each of those Asian countries where Nike has production facilities, the rates of unemployment and underemployment are quite high.

The wage rate is very low in those countries by the U.

Don't waste time.

Get a verified writer to help you with Mini Case: Nike

HIRE verified writer

$35.80 for a 2-page paper

S. standard; hourly wage rate in the manufacturing sector is less than one dollar in each of those countries, which is compared with about $18 in the U. S. In addition, workers in those countries often are operating in poor and unhealthy environments and their rights are not well protected. Understandably, Asian host countries are eager to attract foreign investments like Nike’s to develop their economies and raise the living standards of their citizens.

Recently, however, Nike came under a world-wide criticism for its practice of hiring workers for such a low pay, “next to nothing” in the words of critics, and condoning poor working conditions in host countries.

Evaluate and discuss various ‘ethical’ as well as economic ramifications of Nike’s decision to invest in those Asian countries. Suggested Solution to Nike’s Decision Obviously, Nike’s investments in such Asian countries as China, Indonesia, and Vietnam were motivated to take advantage of low labor costs in those countries.

While Nike was criticized for the poor working conditions for its workers, the company has recognized the problem and has substantially improved the working environments recently.

Top writers

Chris Al

shield Verified writer

starstarstarstarstar 4.9 (478)

Expert Writers

shield Verified writer

starstarstarstarstar 4 (256)


shield Verified writer

starstarstarstarstar 4.7 (348)

HIRE verified writer

Although Nike’s workers get paid very low wages by the Western standard, they probably are making substantially more than their local compatriots who are either under- or unemployed. While Nike’s detractors may have valid points, one should not ignore the fact that the company is making contributions to the economic welfare of those Asian countries by creating job opportunities.

Cite this essay

Mini Case: Nike. (2020, Jun 02). Retrieved from https://studymoose.com/mini-case-nike-essay

Stay safe, stay original

It’s fast
It’s safe
check your essay for plagiarism

Not Finding What You Need?

Search for essay samples now


Your Answer is very helpful for Us
Thank you a lot!