The paper shows that globalization has faced backlash both from the developed and rich countries as well as poor and emerging economies. While developed economies have criticized globalization as the root cause for job losses and the present economic recession, globalization has also been viewed as the reason for mushrooming sweatshops in poorer countries. Nike, for example, has been criticized by various NGOs for sourcing its products from manufacturers who employ child laborers to bring down costs and increase profits.
There are different modes of globalization and each mode of globalization has its own share of advantages and disadvantages. The three most commonly used modes of globalization are Exports, Licensing and Foreign Direct Investment, or FDI. While export is perhaps one mode that involves the least amount of risk, FDI, or Foreign Direct Investment involves the highest amount of risk. Conversely, FDI, in the best possible case, offers the highest degree of advantages of globalization.
Initially known as Blue Ribbon Sports, Nike was founded by Philip Knight and Bill Bowerman on 5th January 1964. In the last 40 years, Nike has witnessed explosive growth and achieved $19,196 million dollars in worldwide sales in 2009. Nike employs over 33,000 employees all over the world with over 7000 at its headquarters in Oregon. In addition, Nike offers indirect employment to over 800,000 workers through contract manufacturing all over the world.
One of the most important factors that helped Nike grow at such a fast rate is the fact that they adapted to globalization very early in their history of existence. Blue Ribbon Sports, the initial avatar of Nike sold imported shoes from Japanese manufacturers. Nike was one of the first sports apparel companies that outsourced manufacturing to then low-cost manufacturing destinations like Japan, Taiwan, and Korea.
As the Japanese and Korean manufacturing costs increased, Nike then shifted .its manufacturing base to new manufacturing outsourcing hotspots like Pakistan, China, Thailand, Indonesia, Vietnam, and India. .