Nike in Indonesia

FDI is a very useful technique in order to minimize the cost of the products and also increase the company territory internationally. There are some advantages in using this FDI which are increase of the employments effects in side the country and also  minimize the cost of the company that leads into maximize in the profit of the company. 


Nike as one of the biggest international company they are start to move their factory and start to use an FDI as their strategy to minimize their cost.  In order to improve their profit the company are moving their factory to the low cost labour country such as indonesia, thailand china and etc.


Since 2005 Nike has open their factory in China (124), Thailand (73), United States (49), and in Indonesia (39). Most of their products that they sold in UK are coming from third world. In indonesia they are start to improve their production and also the quality of the products. There are some potential benefits that the company get such as capital, technology, and management skills and know how to manage the company in a better way, in addition International company such as Nike are making a employment effects to the Indonesian, for example in opening the factory in indonesia it means that they are using a lot local workers that will effect the Indonesian economics in a better way.


There are one question that might be rising trough this issues, are there any long term benefits that the country might gets such as employment training that Bostawana gets or the Indonesia might gets any potential costs such as impact to the government decision, environmental damage and human rights??