Nike: a Multinational Company in China Essays
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…
Although Nike faced many challenges with their joint-venture, China gained some advantages with doing business with Nike. Nike donated equipment to schools and paid them to open up after-school sport teams for children. In 1995, Nike sponsored all the Chinese pro-basketball league teams and provided uniforms and shoes for them. Another benefit China received was the outsourcing of jobs into their country (Sports). Granting, the sweatshops were an enormous mistake that Nike should have never let occur, they have corrected the problem and it has produced over 500,000 jobs in China alone. Nike is now working with the Xiaochen Hotline Program in China to provide training on their labor laws and to improve worker’s accessibility to the hotline (Dutton).
Nike is a good example of a multinational company that faced major challenges entering the emerging economy of China in 1980. Nike was confronted with problems while negotiating business with China and also