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Nik:E The Sweatshop Debate Essay

928 words - 4 pages

Nike: The Sweatshop Debate ….. PAGE \* MERGEFORMAT 1
Running head: NIKE: THE SWEATSHOP DEBATEWeek Four ~ Nike: The Sweatshop DebateUniversity of PhoenixMGT 448~Global Business StrategiesMarch 30th, 2009Nike: The Sweatshop DebateThis paper, based on the case study Nike: The Sweatshop Debate authored by Charles W. L. Hill in his book International Business. Competing in the Global Marketplace (2009) will describe the legal, cultural, and ethical challenges confronted by global business, determine the roles that host governments have played in Nike, and summarize the strategic and operational challenges facing global managers at Nike.Founded in 1972 by Phil Knight, a former University ...view middle of the document...

Accusations were made that "Air Jordan's," were made in Indonesia by 11 year old children. Again, this is against Indonesia Child Labor Laws. The U.S. Department of Labor (2009) Web site states that Indonesian law rose the minimum age for employment from 14 to 15 years.Cultural and ethical challenges Nike faces when manufacturing shoes and apparel overseas is the countries in which the organization contracts to have a different perspective on what is ethical and acceptable when it comes to wages, working conditions, and labor practices. According to Hill (2009) "The majority of Nike shoes are made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom" (p. 155).Roles of GovernmentThe roles of the government in foreign countries have a significant impact on Nike's global operations. During the 1970s Nike contracted with South Korea and Taiwan to produce shoes and apparel. Wages began to rise when workers in South Korea and Taiwan gained new freedom to organize (Hill, 2009). Nike looked toward Indonesia and China where the government prohibits unions and controls the minimum wage (p. 155). Another governmental issue Nike faced is workers from Bangladesh and other areas traveled to Malaysia to work in the factories for Nike. According to The Canadian Press (2008), "the recent migrant laborers paid a fee in their home country to agents to get the jobs. Once in Malaysia, the factory held their passports" (para.8). The Malaysian government requires a $375 US foreign worker fee and Nike had to pay the government in order to release the workers' wages and...

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