In a single line one can say "wherever it is cheapest". Nike has contracted manufacturing deals in countries such as China, Indonesia, Vietnam and Mexico. The advantage of having these products made in these countries is that labour costs are absolutely negligible. If Nike had to use European or American labour then the cost of their products would also increase. The cheap labour of these countries allows Nike to have higher profit margins as well.
These labour exploitative policies of the Company have been severely criticized by many ethical groups as well. Nike also faced boycotts over these policies but they all failed and its annual revenue exceeds fifteen billion American dollars annually.
It's not just Nike that has outsourced its manufacturing; most manufacturing is now taking place in China and services are being mostly outsourced to India.
These labour exploitative policies of the Company have been severely criticized by many ethical groups as well. Nike also faced boycotts over these policies but they all failed and its annual revenue exceeds fifteen billion American dollars annually.
It's not just Nike that has outsourced its manufacturing; most manufacturing is now taking place in China and services are being mostly outsourced to India.