1. Economic Related Issues<br />A multinational corporation such as Nike can be described as a firm that has a productive capacity in several countries with its outsourcing. Economic issues relating to Nike's outsourcing can be related to basic and normal business activity. All major corporations use outsourcing as the best way to control costs and minimize overhead. Like many other multi-global companies Nike is continuing to look for the competitive edge in which to lead their market and keeping cost down. US companies have been outsourcing since Post-War periods and within the past two decades have continued to increase. (Hunter & Cooksey,. n.d.). Before evaluating the economic effect of Nikes operations on the American employee, issues must be considered when deciding if outsourcing to foreign countries should be employed into the firm's cultural settings. Basically these issues pertain to business ethical dilemmas that are clearly between good and bad. The effect of lost wages and employment of US workers. <br />The quality differences of wage inequality among workers in US versus foreign can offer one explanation. Research has plainly shown that equally productive workers can receive different wages from different employers. (Krueger and Summers, 1988). Increasing unemployment in the US as increasing employment on foreign soil.<br />The global market has become more and more competitive in the U.S. companies are adopting the action of utilizing employees who are often in third world countries which are developing nations. This will help reduce technology or labor costs. Potential growth can come from outsourcing in these third world countries. This can happen by increasing the cash flow entering the nation and allowing for individuals to seek growth opportunities for their own betterment. (Legrain, 2004) <br />In a volatile market customer factors as well as a company's needs speed the change required for firms to be more flexible. Outsourcing domestic and/or overseas enables firms to be flexible without cutting employment, by enabling the work to contractors or jobs specialist which workload can be monitored to increase or decrease rapidly on demand. (Bloomberg Businessweek.com n.d.) The ability to increase a company's revenues by implementing outsourcing to other countries can be beneficial. Along with outsourcing a firm can use an increase in production rates, decrease in production cost and a serious analysis of what choices are most optimal for the company at this particular time. US citizens make the choice to purchase American-made products, public view of this may affect a company outsourcing overseas. Economic recession can be another factor relating to the public purchasing of products made in America as opposed to products made in foreign countries. This could lead to a stigmatism in a company's public appearance of negative reactions and goodwill in product branding. (Hunter & Cooksey, n.d.).<br /> <br />Globally Nike has maintained a high presence in the athletic apparel industry. Nike has continued to make changes to ethically alter their leadership role to deter criticism in their manufacturing processes. Examples of the changes Nike has implemented are improving working conditions and practices. (Nikebiz.com., n.d.) In their corporate restructuring they have arranged independent audits to continue to improve and grade working conditions and wages. (Nikebiz.com., n.d.)<br />