Outsourcing of Nike Products

Topic Overview

Nike is one of the biggest suppliers of athletic apparel in the world today. Much of these products are produced overseas and in areas with cheap labor and production costs. These cheap labor costs lead owners and other stakeholders within the company to earn large profits. The low labor costs are putting a burden on many of the workers in these third world countries. The construction of these products takes place mostly in Vietnam, China, and South Korea. Outsourcing to these countries is necessary for Nike because the workers are not able to form unions and it keeps costs down. Many of the locations within these countries take place in large factories with poor facilities and hazardous risks. A common name for these low quality facilities are known as "sweatshops." Bambi Turner explains more on Nike and the history they hold.

While outsourcing jobs to cheaper third world countries is good for many atop the Nike food chain, this keeps jobs from being created within the US and only solidifies the struggle many people in these poor countries share with poverty and health risks. Many can defend the fact that those working in these locations are surviving by the wages they make in these sweatshops. An argument can be made that if it weren't for Nike outsourcing to these countries, then many of the workers would be left off to starve to death and be unemployed. It is also important to consider the opportunities and weaknesses sweatshops deliver to these third world countries.

Why Nike?

As a Sport Management major I come into close contact with many athletic related services, products and events. Nike is a large supplier to many of those related in my field. Recently this year Washington State University also changed it's official contract of athletic apparel over to Nike (formerly Russel). The passion I share for sports carries me over into my desire to discover the true realities that unfold with a large multinational corporation. I aspire to uncover the inner workings of a large corporation and their needs to outsource overseas. Working in athletics I find it very intriguing to have the opportunity to view many of the Nike products. I am interested in where these products come from, who makes them, and the hardships that are overcome for seemingly simple items.

Class Themes

This topic relates to the themes in class to such that many inequalities are occurring with the workers in Nike factories overseas. Much of the burden is falling on the workers in these factories because of the harsh working conditions and low paying wages they are receiving. Not much attention is paid to the working facilities or the opportunities many third world citizens can explore. With a spotlight and deeper look into a multinational corporation hopefully more people will see the inequalities and lack of opportunity many face. A deeper look into outsourcing and sweatshops along with the reasons behind it, will hopefully engage more citizens to act in a more humane and caring manner.

What To Get From This Topic

I wish to understand the deeper reasons multinational corporations make the decisions that they do. Whether it is financial, or personal I find it captivating the risks large corporations are willing to take. I also wish to find a better understanding for the less privileged in other countries and the hardships they must overcome in order to become successful. I also hope to find many connections between western culture and that of other countries of the world. Also where ideas are generated and the consequences for the actions many powerful leaders and businessmen make.