Outsourcing is cheaper Offered incentives Grows their market Distribution is easier What TNC have you studied Write three key facts Nike as a secondary TNC Footwear is made in 150 factories in 14 countries China Vietnam and Indonesia producing the most ID: 800435
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Slide1
Globalisation
Slide2Why do TNCs operate in different places?
Outsourcing is cheaper
Offered incentivesGrows their market
Distribution is easierWhat TNC have you studied?
Write three key facts
Slide3Nike as a secondary TNC
Footwear is made in 150 factories in 14 countries – China, Vietnam and Indonesia producing the most.
430 factories supply Nike apparel in 41 countries including: China, Vietnam, Thailand, Indonesia, Pakistan, Malaysia.
All manufacturing is outsourced – so other companies make their goods under license
why? :Cheaper-Incentives -
easier to move on-
access new markets-
Leaner-
Slide4Nike as a Tertiary TNC
Nike Distribution centres are located in 21 countries the biggest in Memphis is
tha biggest US one. They supply stores.Nike has 930 retail stores worlwide
.Nike has created retail partnerships with JD sports, Footlocker and Intersports in the UK. These provide …Online at
www.nike.com provides jobs at the IT centres and the distribution centres that fill the orders.Nike factory stores………Niketown stores… [
44% of it sales are in the USA]
EMERGING markets in China and Brazil as middle classes are growing and can afford the products
Sponsorship & Marketing also provide employment in the areas but may be contract based
ie
: to deliver the world cup in Brazil 2014 then the contract ends
Slide5What groups of people benefit from TNCs
Woman who work in factories –paid employment training, better life,
Government – taxes paid, infrastructure, DFI,Factory owners – good contracts, overseas customers, growing markets
Slide6The down side?
Nike profit goes to the USA
Contract decisions make outside the countryManagement may come form outside the countryPolitical pressurePoor pay and
conditionsTrade agreements may changeTax incentives change
Slide7How can the IMF help?
What did they do for Greece?
How can they help a more globalised economy?