NIKE SHOES

BASIC INFORMATION

• A) South Korea and Taiwan
• B) No, when workers got freedom to organize and wages began to increase, Nike searched for "greener pastures". They were found in Indonesia, China, and Vietnam.
• C) the inputs include rubber made in a factory in Taiwan and the leather came from cows in Texas.

HOW DO SITE FACTORS CONTRIBUTE TO THE FACTORY LOCATION

• Indonesia, Taiwan, South Korea
• Mostly unskilled worker who are low paid and work overtime. Most workers are female but there are some men. Workers earn around $4 a day in Indonesia. They have the choice to live on site or at their homes.
• Without access to capital the workers would have no materials to make the shoes they need

SITUATION FACTORS AND LOCATION

• Proximity to inputs: parts of the shoes are shipped to Korea from different countries including the U.S. Taiwan, where the shoes are prepared for assembly. Once ready the parts are shipped to a factory in tangarang Indonesia where the shoes are assembled.
• The boxes are made in New Mexico then shipped across the pacific to east Asia.

SITUATIONAL FACTORS AND LOCATION

• Has technology influenced the location of this industry
• If it weren't for modern day technology all of the Nike products would happen here in the US due to lack of efficient and reliable transportation (ships). Thanks to the advantage of sea travel, we can have our product cheaply assembled in east Asia.

SITUATIONAL FACTORS AND LOCATION

• Transportation: Cargo ships
• Break in bulk points: cow hide carried by train from Amarillo to LA, which is then loaded onto the cargo ship and carried to South Korea.
• JITD: occasionally, as with most manufacturing companies, supplies will arrive just before they are needed, but their effective transportation system rarely fails to make it by the deadline.