1. To analyse the advantages and disadvantages of Nike as a TNC
Transnational companies (TNC) control a substantial part of the global economy, and have created a global shift
Aim: To understand why the benefits of the new economy are not shared equally
To analyse the advantages and disadvantages of Nike as a TNC

2. What is a Transnational Corporation?
A company that operates in many different countries regardless of trade boundaries

3. What is the impression given in the cartoon?
What is the attitude of the factory towards the Americans and workers?
Why should we be careful about this resource?

4. The athletic shoemaker Nike has been criticized for practices in its developing factories.

5. The problem with Nike
Nike is a Transnational Company which is based in Oregon USA
Nike products are instantly recognisable across the world due to advertising using famous sporting heroes and the famous Nike tick
Nike is the largest seller of sports footwear and clothing in the world. It operates it in over 140 countries worldwide and in the USA alone employs around 8000 people
Nike is always bringing out new designs to compete within the market. Nike likes to keep its cost as low as possible so that it can make a tasty profit
Therefore Nike has a lot of its goods, sold to you and me on the high street, made in other countries, mostly in Asia where labour is of low cost
Watch the Panorama video about Nike and Gap. It discusses factories set up in Asia and how the workers are treated.
Whilst you watch it write down as many facts as you can ready to discuss after the video.

6. Video Questions
Good or bad? Look at the video and answer the following questions.
Name the countries mentioned in the video
What countries do they operate in?
Why do TNC’s operate in these countries?
Who benefits most, the TNC or the country? Explain your reasoning.
What is a major problem associated with the type of labour (work force) used in these countries?
Describe the sort of conditions these workers experience at work? Mention hours, wages, ages of workers, harassment.
Should the TNC’s leave these countries? What is your opinion?
Give some figures that may give you an idea of the money/profits/hours of work

7. Head office located here
By 1992 most factories had moved from here to Asia
Indonesia
Mexico
China
South Korea
Cheap labour is the main reason why Nike set up factories in this country which is an island under part of China’s territory
Workers were attacked by riot police after protesting when workers were sacked for asking for higher wages in this South American country which has 20 factories
In the 1980’s factories were opened here because of cheap labour, some were even opened in its capital city: Bangkok
Malaysia
Poverty dominates workers lives (earn US$2 a day) in this country where Jakarta is the capital city
Cheap labour is the main reason why Nike set up factories in this country, which is to the south of North Korea
U. S. A
An Asian country with the worlds largest population it also has the largest number of Nike factories (124 in total)
Japan
An MEDC where in the 1960’s; training shoes were made here as labour was cheap. Now finances operations in Taiwan and Korea.
Taiwan
Workers forced to work overtime in this Asian country which borders with Indonesia and Thailand
Thailand
Employees work for 65 hours a week for US$10 in this Communist country
Vietnam

8. Our branded world
Their names and logos aren’t splashed on the front of factories in the LEDC’s

10. Rows of virtually identical giant shed-like structures
through its surrounding fence I could see mountains of Nike shoes piled high

12. Carmelita Alonzo, who died, according to her co-workers, “of overwork
Alonzo had overnights almost every night for one week to meet large orders. She had a two-hour commute to get back to her family.

14. Lines of young women hunched in silence over clamouring machines.
Pure, 100 percent production at low, low prices.

16. 207 factories that produce goods strictly for the export market.‘
207 factories that produce goods strictly for the export market.

18. Main TNC locations in Indonesia, China, Mexico, Vietnam, the Philippines and elsewhere
TNC’s linked to these working conditions:
– Levi’s, Nike, Champion, Wal-Mart, Reebok, the Gap, IBM and General Motors