What are the protectionist advantages provided to Nike by its host states?

Résumé du document

Utility, value, commodity, land labor and capital are the main elements of a political economy. The same basic features rule international economy. Different countries have fundamental laws which govern international trade relations which players must adhere to. In addition, they also provide certain advantages to international firms such as tax advantages, regulated labor supplies, power subsides, infrastructure provision and free trade zones. Protectionism is usually glorified as the means of providing a warm and favorable climate for investment which thereby implies an expense to the environment, and the social concerns of the host country. Protectionism policies also imply a considerable relaxation of the burden on business with the aim of leveling the playing ground for foreign investors. The intention of this paper is to give an account of the protectionist advantages provided to Nike by host countries in view of free trade zones, incorporating tax advantage, power subsidies, regulated labor supply, infrastructure and provision. In addition, it will outline the essential components of multinational apparel companies. Nike will also be explored and possibly linked with state protectionist systems and political economic support.

Extraits

[...] (Vaknin www.personal.umich.edu, www.nike.jp) This is because the host country bows down to pressure that the company imposes since it would be at the greatest advantages incase the company withdrew its investment. According to Joel Bakan, Nike exploits the employees by forcing them to make a shirt in six minutes and nine shirts in an hour. The prices that the shirts are sold for apparently do not match with the daily wage of factory workers. (Bakan, 2004). On top of that, Nike directly intervenes in host countries' political system and international relations to facilitate profit and minimization. [...]

[...] May 1997. Bakan, J. (2004). The Corporation; The Pathological Pursuit of Profit and Power. London: Constable p Clairmont, F.F. (1996).The Rise and Fall of Economic Liberalism, Southbound, Third World Network, Penang, Malaysia. p.12. Facts and FAQs about Nike labor abuses. Viewed from http://www-personal.umich.edu/~lormand/poli/nike/nikelabor.htm accessed on October Lynn, R., Kahle, D & Phelps, M. Good Morning Vietnam: An Ethical Analysis Of The Activities Of Nike In South East Asia. [...]

[...] Nike is provided with attractive protectionist advantages such as discussed above to encourage them to invest in the country. Additionally, the economic power carried by Nike ensures that it solicits political favor in host countries further increasing their protectionist advantages and maximize their profits. Although at many points the image of Nike has been tarnished, the economic truth is that it has jumpstarted nearly dead economies and taught the people how to catch fish rather than depending on foreign aid which sinks them further into international indebtedness. [...]

[...] Host countries make deliberate actions to provide land in designated areas where international companies like Nike can build factories and employ people to work in those counties. These areas are served with good infrastructures like road, power supplies, low cost rent buildings within the vicinity of the factory, transport facilities and communication networks which are very attractive to retaining and attracting investors. There areas are what are normally called export processing zones. (Abott, 2003). The free trade zones enclave a myriad of extensive incentives which more often than not are inclusive of other exemptions of legislative requirements, for example Nike enjoys duty free import goods for re- exporting. [...]

[...] Viewed from http://www.nike.jp/nikebiz/global/pdf/case/gdmornviet.pdf accessed on October Rifkin, J. (1995). The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era. G.P. Putnam's Sons, New York. Vaknin, S. (2003). The labor Divide. A Narcissus Publications Imprint, Skopje. Viewed from www.gorgelink.org/freebooks/vaknin/employment.pdf accessed on October 2007. [...]