IGCSE 3.1 Transnational Corporation - Nike

How many people does Nike employ worldwide directly and indirectly?

• 25,000 directly, 1,000,000 indirectly.

• 1,000,000 directly, 25,000 indirectly.

• 35,000 directly, 1.5 million indirectly

• 10,000 directly, 1,000,000 indirectly

What was the total Nike profit in 2012?

• 1.9 billion

• 1.4 billion

• 1.6 billion

• 2 billion

Where is the Nike headquarters?

• New York

• San Fransisco

• L.A.

• Oregon

How much a year does Nike spend on advertising?

• $9 million

• $7 million

• $8.5 million

• $10 million

Where are the majority of Nike shops?

• Europe, North America and Asia

• Europe, North America and Africa

• Europe, Africa and Asia

• Europe, North America and South America

Where does the bulk of Nike manufacturing take place?

• 40 countries worldwide – clothing comes from Southern Asia and footwear from China, Indonesia, Vietnam Thailand.

• 40 countries worldwide – clothing comes from Europe and footwear from China, Indonesia, Vietnam Thailand.

• 40 countries worldwide – clothing comes from Asia-Pacific region and footwear from India, Laos, Vietnam ,Thailand.

• 40 countries worldwide – clothing comes from Asia-Pacific region and footwear from China, Indonesia, Vietnam Thailand.

Which of the following are reasons why the bulk of Nike's manufacturing takes place in LEDCs/LICs.

• Minimum wage for workers is lower, so greater profit is made by reducing costs.

• Factories can be subcontracted (there is no need for Nike to build its own factories)

• Better access to skilled workers, with higher level of education.

• There is less likelihood of industrial action (e.g. workers going on strike for better wages).

What is the minimum wage in Vietnam?

• $1.50

• $2.50

• $1

• $6

Which of the following are benefits that Nike brings to LEDCs/LICs?

• Provides jobs and plays a role in the development of that countries economy

• May provide healthcare benefits for workers

• May attract other TNC's to set up in the area

• Decreases exports, which increases GDP

State 3 problems Nike create in LEDCs/LICs?

• Can cause pollution of local water systems as result of production processes.

• Pays very low wages to factory workers and could be said to be exploitative.

• Workers often have lots of rights and cannot be sacked easily.

• Sweatshops can develop, where workers are crowded, confined or forced to work long and unreasonable hours for low pay.