Nike Sneakers

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Basics of the Product:

Product: Nike Air Jordan 1

Raw Materials: Leather (Supplied by South American cattle farms); Rubber (Supplied by South American rubber tree farms); Cotton (Supplied by Southern US cotton farms); Polyester

Manufactured in: Privately owned factories in China, Indonesia, and Vietnam

Distribution: All Nike products are shipped from Asian factories to the company's distribution center in Memphis, Tennessee. They are then taken all over the country to stores and outlets.

This map shows the main locations related to the manufacturing and distribution of Nike sneakers. The first two points, 1A in South America and 1B in Indonesia, are where the raw materials come from. Point 2 is in China - this is where the shoes are made. Point 3 is the distribution center in Memphis, Tennessee, where shoes are sorted and moved around the country.

4 Categories of Globalization

1: Cultural: Cultural globalization is the spread of the ideologies of different cultures, and how cultures mix and influence each other. In this situation, Nike is an American company making American clothing in Asia. This results in more Asian citizens wearing Nike products, making their fashion more westernized.

Problem: Because of Nike's impact on Asian culture, traditional aspects of Asian fashion are becoming much less common. Taking away such a significant part of Asian culture will make the countries less like Asia and more like America. This creates a lack of cultural diversity, which makes the world and its people much less interesting and unique.

2: Economic: Economic globalization is the spread of businesses, goods, and services to different parts of the world. Nike is one of the most well-known examples of economic globalization. Nike moved their production to Asia, which created an abundance of jobs for the area's extremely large workforce. In comparison to what people did before the factories were there, these jobs pay very well. Because of these factories, people are making more money - enough to spend on necessities and some extra purchases. This will allow the economy to slowly improve and the standard of living will go up.

Problem: Because Nike outsourced most of their jobs to Asia, very few Americans can be employed at their company. The American people do not appreciate the idea of outsourcing, and dislike Nike and many other companies for doing it.

3: Technological: Technological globalization is the spread of technology throughout cultures to make people's lives easier or fix a problem. Nike is a leading designer of sportswear, so their product solves problems involving athletics. They have made major improvements in the design of shoes, tailoring designs for different purposes like running, basketball, soccer, skateboarding, and football.

Problem: Nike owns much of the sportswear industry. This means that if another company improves on a design, they would struggle to get out of Nike's shadow and market their product as rivaling Nike's equivalent product.

4: Environmental: Environmental globalization is the spread of things that impact the environment to other parts of the world. Nike is working constantly to minimize their environmental impact, making their factories greener and using more recycled materials.

Problem: Some of the materials Nike uses to make products impact the environment. Anything polyester based is made with petroleum, which can only be harvested by drilling into the earth. This drilling can sometimes spill oil into the ocean, severely harming all plants and animals around the spill.

A Solution to the Economic Problem

Outsourcing can be used to the American workforce's advantage. Because Nike isn't spending a lot on labor, they have extra money to build more facilities in America and hire more factories in Asia. These actions would need more American workers, who would be in business and management positions for the company. This proved to work with the Memphis distribution center which created 1,600 jobs, so if they were to build one of those in each region of the country, they would employ more Americans to manage it, and more Asians to meet the production demands.

In Conclusion

I chose to research Nike shoes because I am a fan of the product, and regularly wear them. I rely on Nike to make me quality shoes that I can run in, work out in, and get around campus in with style, durability, and comfort. I now know that making these shoes helps many people - cattle farmers in South American countries can keep their farms going by selling leather to Nike, Southeast Asian rubber farms can make money by supplying Nike with rubber, Chinese factory workers are making more money than ever before from these factories, and Nike's expansion in America is employing more people. Nike's production of clothing, shoes and other products has a profound effect on the world's economy, culture, environment, and technology, and it will continue to both benefit and harm the world, depending on how you look at the effects.