The shift of Nike factory from Japan in 1960 to India in the 1990s is an example of :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → globalisation and flexible labour
Option (3) globalisation and flexible labour — Correct. A new international division of labour has emerged in which routine manufacturing is done in Third World cities. Nike’s shoes were made in Japan in the 1960s, in South Korea in the mid-1970s, in Thailand and Indonesia in the 1980s, and in India since the 1990s; if labour is cheaper elsewhere, production will move again. This flexibility of labour works in favour of the producers and leaves workers vulnerable and insecure.
NCERT (2025-26): “Globalisation and a New International Division of Labour … A new international division of labour has emerged in which more and more routine manufacturing production and employment is done in the Third World cities. You have already dealt with outsourcing in Chapter 4 and contract farming in Chapter 5. Here we simply draw upon the example of Nike company to illustrate how this works. 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.…” “…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. However, if labour is cheaper elsewhere production centres will move somewhere else. This entire process makes the labouring population very vulnerable and insecure. This flexibility of labour often works in favour of the producers.…” |