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Is Nike doing the right thing?

http://news.yahoo.com/s/csm/20061222/wl_csm/onikem...

Interesting story. Nike, one of the many US corporations who no longer hires American workers to make their products, is portrayed as "doing the right thing" by pulliing out of a contract to make soccer balls in Kashmir, where they pay workers $100/month, because children are also found doing the work. My question is, are they doing the right thing by going overseas for cheap labor in the first place?

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  • 1 decade ago
    Favorite Answer

    Wrong thing - If they stay inside USA it will build up USA economy etc, by sourcing outside they are potentially collapsing USA production market.

    It's also the wrong thing to do to produce in a country that has no human rights.

    It's telling the average American worker that we don't care if you don't have a job and we are willing to exploit human rights just to force you to buy a brand of shoes that you can no longer afford because 1. There are no jobs left. 2. We price our shoes 1000% + of the actual cost of production.

    Overall they shouldn't have the right to be called a US company.

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  • 1 decade ago

    OMG!!!! YES!

    Ill explain. Most people dont understand this concept. Its called errrr i forgot what its called. Lol. Oh wait, yes, comparitive advantage.

    Okay, we arent as efficient at producing soccer balls in the US. So we should allow a more effecient country produce it for us. Then the people that would have a job producing these balls get another job at something they are better at ie. widgets.

    Now Nike gets more money (american company which gets the wealth and will trikle down into america eventually) and we get a cheaper product and save money. And the workers that would be making a soccer ball are instead making widgets which americans are better at making and therefore get more money.

    And for the 100 a month wage. Say if nike is planning on hiring 1000 workers. Thats 1000 more people with a job than before. That means there are now people making 100 dollars a month rather than 0 a month. Its supply and demand. People are willing to work for that wage. They dont have to take the job. Unfortunately this counry has a poor economy and thats what labor is going for. Also, remember price of living in these countries are ALOT less.

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  • Anonymous
    1 decade ago

    there are several things we need to consider before we decide right or wrong, first can the company make a profit in America, as it has got to make a profit or else it will go broke, In many cases the unions are breaking our manufacturing ability,and bad management practices should be addressed also,union first, no company can survive paying its workers such a high wage as our car manufacturing co, were being forced to do by the unions, they earned app,$20 per hour, their benefits were or are app another $20 per hour, so the co, has to pay app $40 per hour for these workers, not all of course but many would come to work drunk, doped up or many other things , the co, could not fire them or nothing, if there is no work in their defined job such as a line broke down or etc, they can not be forced to do another job, such as sweeping the floor or anything else, they just sit on their butt and gamble or play cards collecting their pay,then we have management who is paid sometimes millions of dollars for their supposedly expertise, then they cost the company big money by their inept management, yet they can and will collect their Hugh pay and perks also, there fore the price of this company's products will be much higher, so the company's sometimes haft to go where they can survive, it is not necessarily to make a lot more money it is mere survival, so unless the unions and management can improve their own selves and learn to bend some we will keep losing our manufacturing and business base until america becomes another 3rd world country,and it seems our people will haft to get involved to make sure this don't happen

    the

    american people must organize and make sure that other products and services remain lower to compensate for the lower cost placed on manfadturing and business,. our country has got to be competive again or we all lose

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  • Anonymous
    1 decade ago

    MOST businesses are only concerned about profits and how to increase it. AND going overseas to manufacture because the labor is cheaper makes GOOD BUSINESS SENSE.

    Nike - in pulling out of Kashmir for the stated reason - DEPRIVED many local children from earnings which they would almost never have the chance to make - $100/month is hellava lot of money in many parts of Asia.

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  • Anonymous
    1 decade ago

    since when is american corporation consider making profits as doing the wrong thing....

    american company under the pure capitalist rule is only interested in making profits which is relfected in their balance sheet and in their stock value..

    if you ask walmart and macdonalds with their multibillion dollars profits why they are still paying their workers minimum wage....can you explain to me why american corporations would love to move somewhere else where the cost of labor is 1% of the USA?

    all this is triggered by WTO, global world markets, securities and transfer of money anywhere in the world without restrictions...America will allocate theri assets anywhere in the world where they will get maximum value for their investments.

    if you are a socialist and disagree with the capitalists rules of the USA. then perhaps you should try to get into th the democrats party and make chanfges to the system.

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  • kettie
    Lv 4
    3 years ago

    it actual relies upon on what you requested. you will get some promotion pamphlets ,golfing tees or perchance a sleeve of Nike balls. businesses do have cloth and product that they deliver to human beings. In my day writing a letter to a employer for" freebies " replaced into frowned upon. besides, literature replaced into in many circumstances restricted to study and e book comments or comments on instructions we had already performed.

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  • 1 decade ago

    companies like Nike makes zillions of dollars selling their products overseas, so it makes sense that they would also manufacture products overseas. do you think that there is something wrong with japanese carmakers making some of their cars in the U.S. rather than in japan? if it is okay for us to receive investment from overseas (and we receive a lot) then it is alright for u.s. companies to invest overseas. that's what's called a free market.

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  • 1 decade ago

    If your a business man I guess the answer would be yes if all you are worried about is money.

    For our Country NO. Those are jobs that are taken away from Americans.

    I feel the second answer is the correct one.

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  • 1 decade ago

    Well someone has to make the shoes. And kids can be made to do anything one tells them to do. So yes, capitalism works.

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  • 1 decade ago

    all comanies who outsoruce our jobs should be heavily fined, subject to windfall profits tax, and be boycotted

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