Why did Nike's production widen to Thailand and Indonesia in the 1980…

The correct answer is Option (3) → Labour costs grew in South Korea

Option (1) Labour costs grew in Japan — Incorrect. Rising costs in Japan explain an earlier move. Shoes were made in Japan in the 1960s, and as costs increased there, production shifted to South Korea in the mid-1970s.

Option (2) Labour costs grew in Taiwan — Incorrect. Taiwan is not one of Nike's production centres in this account. The shifts run from Japan to South Korea, then to Thailand and Indonesia, and later to India.

Option (3) Labour costs grew in South Korea — Correct. Labour costs grew in South Korea, so in the 1980s Nike's production widened to Thailand and Indonesia. Firms move production to wherever labour is cheaper.

Option (4) Labour costs grew in India — Incorrect. India came later as a centre. Nike has been produced in India since the 1990s, drawn by cheaper labour, so rising costs in India did not cause the 1980s move.