Wal-Mart TNC Flashcards
Walmart
Wal-Mart divides its labour across different countries. Its headquarters are still in Arkansas, but most manufacturing is carried out where costs are lower (cheaper labour and resources), e.g. electronic goods are made in China, and clothing is made in India.
Wal-Mart is starting to expand into emerging economies like India. For example, Wal-Mart and an Indian company called Bharti Enterprises are opening new retail outlets together in the style of Wal-Mart stores.
Walmart Economic impacts in the USA
Employment - each new store creates jobs, e.g. an expanded store in Milpitas (California, USA) opened in 2015, creating 80 new jobs.
Low prices Wal-Mart is one of the cheapest supermarkets in the USA.
Decline in manufacturing industry-Wal-Mart buys a lot of products from suppliers outside the USA, which has caused a loss of manufacturing jobs in the USA.
Loss of local businesses.This can cause the loss of local jobs.
Walmart Social impacts in USA
Wal-Mart provides consumers with a wide choice of goods, e.g. 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 (e.g. health care), so employees have to rely on state benefits.
Wal-Mart has been accused of having poor working conditions. Some employees have to work long and irregular hours.
Walmart Environmental impacts in USA
Wal-Mart produces huge amounts of polluting gases, but it has opened ‘green stores’ that run on renewable energy. Stores are often large and out-of-town- they take up large areas of land and driving to them causes pollution.
Walmart social impacts in Host countries
Wal-Mart offers skilled jobs in less developed countries. E.g. Wal-Mart stores in China are managed by local people.
In its poorest host countries, working for Wal-Mart can offer a more reliable wage than other jobs.
Working conditions may be poor, e.g. some Wal-Mart suppliers have long working hours.
Wal-Mart donates hundreds of millions of dollars to improve things like health and the environment in countries where it operates. E.g. in 2015, Wal-Mart donated over $2 million to communities in West Africa who were impacted by natural disasters.
Walmart economic impacts in host countries
Wal-Mart creates lots of jobs in construction, manufacturing and retail services.
Local companies and farmers supply goods to Wal-Mart. E.g. Wal-Mart works with over 6000 Canadian suppliers.
Local suppliers to Wal-Mart may be able to expand their business by exporting their goods to Wal-Mart stores in other countries.
Wal-Mart has been criticised for forcing its suppliers to accept low prices for their products.
Local companies suffer in competing with Wal-Mart. Smaller shops in the area often have to shut-they can’t compete with the low prices and range of products.
Most of the profits from Wal-Mart stores are sent back to the USA rather than put into the host country’s economy.
Walmart’s environmental impacts in its host countries
Wal-Mart invests in environmentally friendly technologies and sustainable development.
Wal-Mart stores use large areas of land for factories and stores.
