Nike And Globalization

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Globalisation is not new, it has always been an aspect of human nature for at least two thousand years. It has been a characteristic of people for a very long time. Take “Alexander the great” for instance he always strived to explore the unknown or in his words “the ends of the world and Great Outer Sea”. The reasoning behind this was to expand culture, economic power and influence (Waller, 2010). Like all things globalisation is going to have advantages and disadvantages but which one of the two outweighs the other one? Another question to ask is how did globalisation contribute to the global financial crisis? Also when the crisis occurred how were countries and companies across the world affected? Cavusgil & Knight(2014) highlight that…show more content…
You need to take a look at things from the side of developing countries who are being exploited by the MNC’s. Companies in todays world are stuck in-between the balance for good corporate citizenship and company performance.Nike have become the perfect example of a company that symbolises both the benefits and the downfalls inherent in globalisation (Locke, 2002). Through the means of globalisation today Nike stands at a net worth of 22.3 billion but the question is, at what cost? In the 1990s reports made by papers such as The New York Times and The Economist came out with criticism’s of the companies practices. Reports highlighted how Nike were employing more than 25’000 workers in Indonesia and were paying them the value of 1 US dollar a day. It came out that the working conditions were dreadful and that the treatment of workers when inhumane. The company was under major scrutiny. At first Nike ignored the articles and all the bad publicity however by the mid 1990’s Nike instructed the factories in Indonesia to raise the wage of the factory workers (Locke, 2002). Above is the perfect example of the bad sides of globalisation, its an example of the rich getting richer and the poor developing countries getting exploited. Nike started out as a company that promotes healthy lifestyle and fitness however through the greed they got from globalisation…show more content…
People in favour of globalisation say that in increases wealth. But the question is who does it create wealth for and at what cost? It creates wealth for MNC’s at the cost of developing countries, the cost of our environment, the cost of peoples lives and well being. Globalisation seems to make the rich richer and makes underdeveloped countries poorer. Globalisation is not a force for good in business, however it doesn't matter because globalisation is inevitable and will always be happening. Some people say it gives too much power to multinational business’s. Globalisation does bring people together and connect people through ICT but also influences social division. People get the opportunities to better their lives through education and travel but the cost of this is that poorer countries are then tied stronger to their unchanging position. Globalisation is also robbing countries of their culture. Countries are forgetting what they are and are all becoming “Ameiricanalised” for example if you go to a McDonalds in Spain and ask for McNuggets, you'll get them or if you go to a Starbucks in Japan, you'll have the same experience as you would at home instead of experimenting in new things and new cultures. In terms of MNC’s and business’s however they are of coarse going to love globalisation because it gives them endless opportunities for global

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