Jump to content



Photo

Nike & China vs USA


  • Please log in to reply
No replies to this topic

#1 stocks

stocks

    Member

  • Traders-Talk User
  • 3,863 posts

Posted 05 September 2018 - 08:07 AM

Why would any major corporation intentionally stake out a branding position that is adverse to their financial interests?  (supporting Colin Kaepernick)

 

a multinational corporation would never make a branding decision adverse to their financial interests. Unless there is a hidden risk unrelated to what is visible on the surface.”  

 

The bigger financial risk to the Nike Corporation has everything to do with geopolitics and a reset of international trade agreements. 

 

Nike Inc. has hitched its massive corporate existence to a 10-year business plan that is dependent on the continuance of recently negotiated manufacturing contracts. 

 

The contracts for the manufacture of the Nike products are almost exclusively based on international agreements with Asian companies. Some are ASEAN countries; but specifically the most quantifiable risk stems from Chinese and North Korea contracts.

   

President Trump is likely about to levy a massive round of Section 301 tariffs on imported Chinese goods. Nike would be one of the U.S. manufacturing companies hardest hit by such a move. The current Trump administration objective toward renegotiated trade deals with China represents the most significant and mostly quantifiable threat to the Nike business plan. 

 

 

 

https://theconservat...-trade-picture/


-- 

200,000 US troops are stationed in 177 countries throughout the world.