The Nike vs New Balance disagreement regarding import tariffs for Shoes made in Vietnam

An article in the Wall Street Journal titled “Nike, new balance highlight thorny issues in trade talks” (October 7, 2013), describes the disagreement between Nike and New balance regarding the 10% US tariff on shoes made in Vietnam. The tariff impacts Nike’s imports but are supported by New Balance, with plants in Maine. Vietnam, a member of the Trans Pacific Partnership, wants the tariff eliminated, as does Nike, which has a lot of manufacturing in Vietnam. But New Balance claims these tariffs make their Maine plant competitive. How should the competing claims by these shoe manufacturers be balanced ? Should the supply chain costs and their impact on customer prices dominate any benefits to local job creation ?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s