What are the reasons for Nike as a company being in international business?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Nike is involved in international business for two main reasons. First, it is involved in this business because it can obtain lower labor prices by producing its shoes and other products outside the United States.  By obtaining lower labor costs, it can sell products at a lower price and attract more buyers.  Second, Nike is involved in international business because there are more potential customers outside the United States than inside.  Nike needs to be involved in things like the English Premier League so that its brand can become prominent in Europe and Asia.  By doing so, it can reach more customers.  Thus, Nike is involved in international business so as to A) be able to sell products at lower prices and B) gain access to a larger customer base.

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