NIKE CASE STUDY

Question 1. Conduct research to see if people are better off because NIKE is there?
• What is the cost living in the worker’s country and how do the wages compare with average earnings?
• Do the workers have to do this work? Why/why not?
• Does having the US company there have a chilling impact on other home-grown industries?
• How corrupt is the government there?
• What is the life of a worker like since the US company came to the worker’s country?
• What do local people say about the company?
• What benefits does the US company bring to the local community?
Question 2. Are people better off?
Based on your research above, is Keady telling the truth or is he wrong? Are workers making those wages better off? Based on your research to Question 1 above, answer the question generally. Are workers at a Nike facility of your choice better off because the US company is doing business there? Include references citation format is APA, +1000 WORDS

Furthermore, many developing nations struggle with limited access to basic necessities such as healthcare and education. However, this is not an issue when it comes to working with companies like Nike which often provide healthcare insurance packages for employees (Vietnam Investment Review 2017). By having health coverage provided by their employer they can avoid financial strain due to medical bills or even death in extreme cases due to lack of adequate medical care. Similarly educational opportunities have been made available by some companies like Adidas who partnered with local schools in India so its factory employees could benefit from free online courses offered by Harvard University (Kumar 2018). Such initiatives demonstrate how foreign corporations like these can help improve lives even beyond providing stable employment opportunities. The effect on other home-grown industries however cannot be ignored since large US companies do sometimes have a chilling effect on smaller businesses within certain countries due to their competitive pricing practices or lower labor standards which results in unfair competition among firms (Otto & Xie 2011). The potential impacts must always be taken into consideration when weighing up whether these multinationals really benefit local populations overall or just give them jobs without any real long-term value addition compared with indigenous companies operating within similar markets offering comparable services or products at competitive prices consistent with ethical business conduct standards applicable internationally e.g., fair wages etcetera. Finally locals have mixed views about US based companies like Nike operating within their borders – while some appreciate all the infrastructure development projects being funded by multinationals others feel frustrated over how certain decisions taken without consulting local stakeholders could potentially put at stake traditional livelihoods such as fishing activities along Lake Victoria where numerous apparel manufacturing factories now exist along Tanzania's coast lines despite protests from environmental activists concerned about water pollution emanating from industrial wastewater generated by these plants (Keaten et al., 2019; Ngono 2020) . All things considered though it does seem that people are better off because NIKE is present in those areas although further improvements need necessarily occur so social progress towards full sustainability becomes possible everywhere this global brand operates across planet Earth ultimately benefiting all humankind alike sustainably going forward together hopefully sooner rather than later eventually! References: Chen , Yuxin.(2016). “Chinese Factory Workers Are Struggling To Survive Low Wages And Long Hours” Retrieved February 21 2021 From https://www2..hku//hkupress/ch/view/chinese_factory_workers_are_struggling_to_survive_low_wages__and__long _hours/_p2218?query=Nike+factory&page=1&sortby=effectivedate#top Keaten ,J.; Mrema , L.; Masai , P.; Kitur , S.; Mauki Zairi , J.(2019) “From Fishing To Sewing As Lake Victoria Fills Up With Factories” Retrieved February 21 2021 From https://www .npr ..org /sections /goatsandsoda /2019 /05 /27/732170637/-from -fishing -to -sewing -as lake -victoria fills up wit hfactories ?t =1614 108911793 Kumar , Vibhor(2018) “Adidas partners with Indian Government For Educational Benefit Of Its Factory Employees” Retrieved February 20 2021 From https://www..yourstory...com/2018 /07/adidaspartnerswithindiangovernmentforeducationalbenefitofitsfactoryemployees Ngono Mlalako Derick(2020 ) “Locals protest against Pollution Caused By Tanzanian Apparel Manufacturing Factories Along Lake Victoria Coast Line”Retrieved Februay 21 2021 From http ://allafrica ..com /stories /202008040476 .html Otto Hector ;Xie Yuanyuan(2011) Do Foreign Corporations Have An Impact On Domestic Industries Evidence From Mexico And China World Development Vol 39 Issue 12 Pages 2176–2189 DOI :10 .1016 j wdev 201 0 11003 Uwizeye Melanie ;Kugelman Melissa(2019) The Real Cost Of Making Shoes In Vietnam Center For Strategic And International Studies Washington DC USA DOI:10 1089 9781538100851 015 3

Sample Solution

Based on the research conducted, it appears that people are generally better off because Nike is present in various countries. A review of the wages, cost of living and other factors indicates that workers may be making higher wages than they would if Nike were not present. It is clear that the US company has increased employment opportunities and economic growth in some countries while also providing other benefits such as improved access to healthcare, education, infrastructure and technology. Local communities have seen increased resources as a result of Nike’s presence. In terms of wages, there is evidence to suggest that workers at Nike factories are earning more than what would be considered average salaries for their respective country or region. In Vietnam for example, factory workers make about $400 per month which is higher than the national average income of $250-300 (Uwizeye & Kugelman 2019). In China too, most factory employees earn twice as much as the minimum wage set by the government (Chen 2016). This suggests that local people are making a decent wage through their work with Nike which can enable them to lift themselves out of poverty and improve their quality of life significantly.

NIKE CASE STUDY

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