Nike a Multinational Company in China Essay - 901 Words

Nike: A Multinational Company in China Nike is one of the largest athletic shoe brands in the world and sells millions of shoes and clothing each year. The company was founded on January 25, 1964 by a University of Oregon track athlete Philip Knight and his coach Bill Bowermanas. It was first named Blue Ribbon Sports and it officially became Nike, Inc. on May 30, 1978 (Nike). As a multinational company, it operates retail stores domestically and overseas and all of the products it sells are manufactured by independent contractors located predominantly in foreign countries. Nike first entered the international market through China overcoming the many challenges it faced while trying to do business with them. Nike has no involvement in the†¦show more content†¦Major problems arose between the two when China demanded for more control, pricing, and rights to each factory (Austin 35). The Chinese felt that Nike was trying to take advantage of them when Nike would not allow them such control. The Chinese became was very close to ending any negotiations they had agreed upon but luckily settled on an agreement. Nike’s primary objective was to â€Å"establish the means by which they would buy a finished shoe product from the Peoples Republic of China,† as written in their submitted business proposal (Austin 29). Some of Nike’s other aims Austin describes in his case study were a target goal of 100,000 pair of shoes per month in the first phase and growth to 1,000,000 pair per month. Five months after their initial offer, a contract was signed and shoe production began by October 1981. Nike’s joint venture with China promised lower costs because of their cheap labor and high production. However, by 1984 production had only reached about 150,000 pairs per month instead of the 1,000,000 they had previously agreed on. During the 1990’s, another problem Nike faced during its joint-venture in China was the bad working conditions and low wages at their factories. Nike was accused of profiting from sweatshop labor that included child labor, physical abuse from fact ory managers and exposure to dangerous chemicals. They originally denied claims against them; however, in an article published byShow MoreRelatedMultinational Corporation1374 Words   |  6 Pages12-14-cent-an-hour for your hard work, imagine you work with toxic chemical glues, paints and solvents everyday. Multinational Corporation is a company that make and sells a product in more than one country. Sometime we called a  ¡Ã‚ °transnational corporation  ¡Ã‚ ±. Multinational Corporation are harmful because of bad working condition, low wage and long hours, bad future and life. Multinational corporations are harmful because they have bad working conditions. 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