Globalisation and Nike

Globalisation a11d Nike
GLOBALISATION
Globalisation is the growing relations of international markets and it involves the economic activity in the production of goods and services among countries. It involves aspects such as growth and productivity, employment and skills wages and unequal distribution in wages both internationally as within a country. Hence, the belief that globalisation leads to growth is present all over both the works of Friedman and Norberg, but can be illustrated by a quote from Friedman: 'Economic development in terms of globalisation happened when we connected New York, New Mexico and California. It happened when we connected Western Europe, America and Japan. And it will happen when we connect India and China with America, Europe and Japan ' (Friedman, 2007, p. 277). .Simultaneously, globalisation is used by some scholars to refer to the efforts of the International Monetary Fund (IMF), the World Bank and others in order to create a global free market for goods, capital, labour and services. This political project, whilst being significant and potentially damaging for a lot of poorer nations is really a means of profit rendering for multinational companies (IMF, 2000). On that same line Wallerstein (2000, p. 15) argues that globalisation works in such a way that the countries of the core generally tend to gain advantages on the expense of nations in the periphery. In other words globalisation has not only created a more competitive market, but it has also contributed to higher level of impoverishment, inequalities in distribution of incomes and the weakening of institutions and social support systems. For example, the pace of economic progress has been uneven in time and the conversion of the old systems as one independent nation has left many people behind due to variations in income per head between countries and regions. (Steeten, 2001, p. 25). Hence, to avoid the negative effects of globalisation certain factors are to be taken

Cited: in Burns, 2000, p. 72). This can be seen as being a major peril of the concept and process of globalisation as working condition in developing countries are unacceptable. Stories such as these related to underpaying of workers, mistreatment of workers and the employment of children spoils the reputation of companies. Hence, multi-national enterprises are more concerned with making profit over improving social conditions for workers. These can be seen as the dark side of globalisation. CRITICAL ANALYSIS It could be argued that through this case study, globalisation has affected Nike in a number of different ways. Firstly it is inevitable that Nike has gained major economic related profits due to globalisation as it has allowed the company to expand and flourish within the American and international economy. However besides economic and political profits negative imageries associated with the company have also been perceived through its 'sweatshop ' policy. After the issues that have been raised about child labour and the miss-treatment of workers in countries such as China, Indonesia, and Pakistan, it can be observed that globalisation has dented both the image of Nike and their products alongside their advertisements and marketing (Horne, 2007, p. 81). However, in regards to the underlying ethical issues which concern mass production of Nike, we can thus observe a movement of anti-globalisation based on the ideology of 'counteracting the harmful trend of globalisation in order to restore and reform uncontrollable capitalism ' (Klein, 2000, p. 345). These movements can be seen in westernized countries through the impact of anti-globalisation activists and campaigns.