Nike Expansion Strategy In Globalization

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Nike.Inc is one of the top 10 footwear companies which have the business model of low-cost and high-quality products. Nike is a symbol of benefits and a risk-taking business pattern in the recent global market. The business model shapes the organization behaviors in the international market. This fast-growing firm was a multinational company (MNC) which went free trade in the 19th century. Although this MNC enjoys the benefits of globalization, it lacks clear of a good corporate citizenship in globalization. First, this paper examines the Nike expansion strategy in globalization and its negative and positive impacts on various factors. Next, the firm responded to controversial issues. In addition to these, I will state my opinions. I will end …show more content…

Some of them are the properties of Nike's Korean suppliers. The positive impact was the factory production increase, and it came under detailed examinations and careful investigations. The negative influence of the firms was greater scrutiny exposed to a variety of Non-Government Organizations and labor activists. They made a statement that these factories were exploiting Indonesian workers by applying exemptions to the legal minimum wage. These activists also found that the poor working condition and labor abuses happened in the plants. They demanded it against the human rights. In Indonesia, exemptions to the legal minimum wages were usual, and many other similar businesses applied to it. The company owners signed the petition to express their hardship to pay. It then handed out to the government for exemptions to the legal minimum wages. The legal minimum wages can only fulfill around 2/3 of the one worker basic living except for their family. The Nike's contractor is claimed to perform a bad behavior to local labors and stingy with wages. The author claimed that the employees and their colleagues were terrified of their employers from South Korean (Locke. R, …show more content…

It ignites harsh criticism against this MNC operated in the Pakistan. Several public leaders, trade unions, consumers groups expressed the disapproval to this branded products in the Pakistan. According to the author, one of the Vice President of the firm, responded to the article as a representation of several events. The events could be the understanding of international trade. It also could be one of the international labor standards. Or it could be the corporate responsibility to achieve its goals (Locke. R,

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