Globalisation - Case study: the supply chain of Nike footwear

10 important questions on Globalisation - Case study: the supply chain of Nike footwear

When is an activity knowledge intensive?

When it requires workers to possess a high level of education, skill and experience (knowledge)

What do we call an activity which requires a lot of money?

Capital intensive

What is labour intensive?

An activity which requires a large workforce (a lot of labour)
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Where are the headquarters of Nike located? What happend there?

In an MEDC, they research labs and design studios

What do the researchers at the nike sport research lab study?

The biomechanics & physiology of athletes in all kinds of disciplines and under different conditions and the demands of athletes & the performance of the footwear they use

What are the research and development activities that are required in the design of Nike footwear?

Knowledge intensive, capital intensive & labour intensive

Name 3 important raw materials in the production of footwear

Rubber, leather and cotton

Where are Nike's main cotton suppliers?

In China, India & Turkey

Where will an labour intensive activity often be found? Why?

In low wage countries, because this saves the TNC a lot of money

What happens during the manufacturing of an athletic shoe?

  1. Raw materials are converted into intermediate goods
  2. different individual parts of the eventual shoe are stamped out of these intermediate goods in a factory
  3. different parts will be stitched out or glued together and will step by step form the final good

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