Global Governance + Global Systems (Case Study) Wal-Mart Flashcards
What is Wal-Mart?
A chain of discount department stores, including ASDA in the UK. It is the largest retail TNC in the world. It began in 1962 when Sam Walton opened the first store in Arkansas, USA.
What was the pattern of Wal-Mart’s expansion?
More stores opened across Arkansas, then the USA, and more recently across the globe via the acquisition of other retail companies for example Seiyu in Japan, ASDA in the UK and Bompreço in Brazil. Some Wal-Mart stores continue trading under their own name like ASDA while other are re-branded.
How is Wal-Mart’s labour divided across different countries?
The headquarters are still in Arkansas, but manufacturing is carried out where costs are lower, for example electronic goods are made in China and clothing in India.
Where else is Wal-Mart starting to expand?
Wal-Mart is starting to expand into NEE’s like India. For example Wal-Mart and an Indian company called Bharti Enterprises are opening new retail outlets together.
What is an economic impact of Wal-Mart in the USA (home country)?
Employment, each new store creates jobs, an expanded store in Milpitas, California, opened in 2015, creating 80 new jobs.
What are the social impacts of Wal-Mart in the home country?
Wal-Mart provides consumers with a wide choice of goods, the ‘supercenter’ stores sell things like garden furniture as well as food and clothing.
Many Wal-Mart stores are open 24 hours a day, so consumers are able to shop when they like.
Many jobs at Wal-Mart are poorly paid with few benefits, health care, so employees have to rely on state benefits.
What is an environmental impact of Wal-Mart in the USA?
Wal-Mart produces huge amounts of polluting gases, but it has opened ‘green stores’ that run on renewable energy.
What are the social impacts of Wal-Mart in the host countries?
Wal-Mart offers skilled jobs in LIC’s, Wal-Mart stores in China are managed by local people.
Wal-Mart donates hundreds of millions of dollars to improve things like health and the environment in countries where it operates. In 2015, Wal-Mart donated over $2 million to communities in West Africa who were impacted by natural disasters.
What is an economic impact of Wal-Mart in host countries?
Local companies and farmers supply goods to Wal-Mart, works with over 6000 Canadian suppliers.
What is an environmental impact of Wal-Mart in host countries.
Wal-Mart stores use large areas of land for factories and stores.
