NIKE SHOES

WHERE IS IT MADE?

• 70% in China and Indonesia
• Others: Vietnam, Taiwan, and India

WHERE DID IS ORIGINATE?

• Back of the founder, Phil Knoght's, car
• Portland, USA

INPUTS

LEATHER

• From Texas cows
• Shipped to South Korea and Pusan for processing

COTTON

• Leaders of cotton production:
• China
• India

RUBBER

• From South American rubber trees
• From petroleum in Saudi Arabia
• And benzene from Taiwan produced in Jakarta
• Bulk gaining

OTHER SYNTHETICS

• Petrolium based
• Ethanol from Saudi Arabia
• Prossesed in South Korea
• Bulk gaining

BRIC INVOLVMENT

• Growing economies
• Evolved governments
• Large workfore
• Creates great prospects for new factories

SITE FACTORS

• Many resources/money
• Strong economies
• Stable government
• Brick reducing

WORKERS

• Unskilled females-doesnt require skill
• Females work for less
• Large workforce (labor intensive)
• Little rights=less say in salary
• Low wages-saves money

SALARY

• Indonesia: 23 cents per hour
• Vietnam: $42 per month
• Shanghai: 39 cents per hour
• Mainly below $1 per hour

CAPITAL

• More capital=
• Better machines
• Buys resources
• Pays workers

SITUATION FACTORS

• Close to:
• Resources
• Large workforce
• Low minimum wage

TRANSPORTATION EFFECTS

• Allows for movement of inputs
• Transportation=factories closer to market
• Resources cost less to move

TRANSPORTATION TYPES

• Warehouses to buyers=trucks
• Ships from Asia to market
• High end items use planes

BREAK BULK POINTS

• Memphis, USA
• Bankok, Thailand
• Shanghai, China

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JUST IN TIME DELIVERIES

• For certain resources