Nike Vietnam

Question 1

What does Nike mean in English?

Answer 1

Victory

Question 2

What language is Nike from?

Answer 2

Greek

Question 3

How many contract workers worldwide does Nike employ?

Answer 3

650,000 contract workers worldwide

Question 4

How many Nike factories are there worldwide?

Answer 4

700 factories worldwide

Question 5

Where is the majority of nikes workforce and what is the %?

Answer 5

75% of Nikes workforce is in Asia

Question 6

What is the demographic for the majority of Nike workers?

Answer 6

Women under 25

Question 7

What is Nikes minimum age for making clothes?

Answer 7

16 for making clothes

Question 8

What is Nikes minimum age for making shoes?

Answer 8

18 for making shoes

Question 9

What is Nikes minimum wage?

Answer 9

£54 per month

Question 10

Is Nike higher or lower than vietnams average minimum wage?

Answer 10

Much higher

Question 11

When was Nike founded?

Answer 11

1972

Question 12

How many more times pay does a Nike worker earn than a farmer?

Answer 12

Nike worker earns 5x more money than a farmer

Question 13

In what yet did Vietnam outlaw child labour?

Answer 13

1988

Question 14

How many children did the law against child labour prevent from working?

Answer 14

Law prevented 2.2 million children from working in 10 years

Question 15

What is a consequence of vietnams minimum wage rising?

Answer 15

People can pay for better education so their children can get better jobs so taxes can increase and the country can develop even further

Question 16

What is vietnams national average minimum wage?

Answer 16

£18/19 per month

Question 17

What percentage of Nike workers are female?

Answer 17

83% female

Question 18

In which year were 37 women forced to walk around the factory in high temps for wearing the wrong shoes to work?

Answer 18

1997

Question 19

What happened in 1997?

Answer 19

37 women were forced to remove their shoes and walk around all day in the very high temperatures barefoot because they wore the wrong shoes

Question 20

Where is Nike headquarters?

Answer 20

Oregon, USA

Question 21

Who is Nikes CEO?

Answer 21

Mark Parker

Question 22

What is Nikes CEO’s yearly salary?

Answer 22

£1.55 million

Question 23

What was Nikes CEO’s bonus last year?

Answer 23

£16.8 million

Question 24

How many workers for Nike are in Asia?

Answer 24

350,000 Asian workers

Question 25

Name two other countries where Nike have factories

Answer 25

* Cambodia | * Indonesia

Question 26

Where is Nikes research centre?

Answer 26

Oregon, USA

Question 27

What type of employment is each of: HQ, research centre and manufacturing?

Answer 27

HQ: tertiary Research: quaternary Manufacturing: secondary

Question 28

Why did Nike move their factories from South Korea and Taiwan after the 1970's?

Answer 28

Vietnam were less developed so they had lower wages

Question 29

Which 2 things meant Nike could take advantage of Vietnam and their workers?

Answer 29

* Vietnam had no protective labour laws so no ones job was guaranteed * weak environmental laws so they didn't need to take care of the environment

Question 30

Name 3 reasons Nike located in Vietnam, an LEDC

Answer 30

* endless supplies of cheap labour * land for factories in LEDC's is much cheaper * LEDC governments encourage TNC's to go there so their economy can grow by providing jobs etc

Question 31

What can governments offer to encourage TNC's to come to their country?

Answer 31

Tax incentives

Question 32

Market wise, why did Nike choose to locate in Vietnam?

Answer 32

There is good access to new global markets in South East Asia, especially China. As China becomes richer they will spend more money on Nike products. Also there is good transport links

Question 33

Name 8 positive impacts of Nike in Vietnam

Answer 33

* creates lots of jobs in Vietnam * pays higher than minimum wage * improves skills of local people * attracts other MNC's as well * Nike exports are profitable for balance of payments * sets new standards in other factories, how to be treated, how to be successful etc * contributes to local taxes, improves infrastructure * beneficial for Nike and Vietnam as it decreases unemployment levels

Question 34

Name 7 negative impacts of Nike in Vietnam

Answer 34

* no security of employment * wages are still low * Tae Kwang Vina factory forces workers to work overtime * verbal and physical abuse of workers * Nike ignore environmental regulations * company image undermines national culture * concerns about political influences of Nike

Question 35

What does Nike in Vietnam lead to?

Answer 35

The positive multiplier effect

Question 36

Name 4 reasons why Nike outsource manufacturing

Answer 36

* people willing to work longer hours as they need the money * bigger workforce as there are more unemployed * enthusiasm for simpler things as they don't know anything else * cheaper labour as they can't fight for anything more, they take what they can get

Question 37

How many plants are located in Vietnam?

Answer 37

34