As labour costs grew in South Korea, to which countries did Nike's sh…

As labour costs grew in South Korea, to which countries did Nike's shoe production widen in the 1980s?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Thailand and Indonesia

Option (1) Japan and Taiwan — Incorrect. Japan was Nike's first production base, in the 1960s, before the move to South Korea. Taiwan has no place in Nike's chain of production centres.

Option (2) Thailand and Indonesia — Correct. When labour costs grew in South Korea, Nike widened production to Thailand and Indonesia in the 1980s. Production moves to wherever labour is cheaper.

Option (3) Malaysia and the Philippines — Incorrect. Malaysia and the Philippines are other South-East Asian countries, but Nike's spread from South Korea in the 1980s went to Thailand and Indonesia.

Option (4) China and Vietnam — Incorrect. China and Vietnam are not the 1980s step in Nike's story. After South Korea, production widened to Thailand and Indonesia, and India followed from the 1990s.

NCERT (2026-27): “Globalisation and a ew International Division of Labour …
Nike grew enormously from its inception in the 1960s. Nike grew as an importer of shoes. The founder Phil Knight imported shoes from Japan and sold them at athletics meetings. The company grew to a multinational enterprise, a transnational corporation. Its headquarters are in Beverton, just outside Portland, Oregon. Only two US factories ever made shoes for Nike. In the 1960s they were made in Japan. As costs increased production shifted to South Korea in mid-1970s. Labour costs grew in South Korea, so in the 1980s production widened to Thailand and Indonesia. Since the 1990s we in India produce Nike. …”

As labour costs grew in South Korea, to which countries did Nike's shoe production widen in the 1980s?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Thailand and Indonesia

Option (1) Japan and Taiwan — Incorrect. Japan was Nike's first production base, in the 1960s, before the move to South Korea. Taiwan has no place in Nike's chain of production centres.