Sunday, October 14, 2007
Wal-Mart and Globalization
Wal-Mart has become the biggest company in the U.S. and arguably the world. This fact has created controversy about how much power Wal-Mart has and should have. I have done some research on why people have problems with Wal-Mart and globalization seems to be the biggest one. According to a PBS frontline documentary, "Is Wal-Mart good for America?", Wal-Mart is forcing companies to take their manufacturing plants to other countries where the labor is cheaper which helps to keep product prices low. That is called off-shoring which is different than outsourcing. Though the affects are very similar because their are still many jobs that are lost in the U.S. and are given to other countries. I feel that a lot of companies are upset because they are not as successful as Wal-Mart is and try to supply any negative information they can find. As negative as some aspects of Wal-Mart's business practices are, they provide the public with low prices and keeps them happy. There are so many stores that are similar to Wal-Mart, just not as successful. I feel as though Wal-Mart did not invent globalization, they just perfected it.
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A very good point. Wal-Mart is an example of what Friedman is proposing: a corporation that takes advantage of globalization to grow and become more profitable.
Wal-Mart has used the increasingly competitive global marketplace to their advantage. Other major retailers are doing the same thing.
But the companies that are criticizing Wal-Mart are not competitors, but suppliers, manufacturers. That makes a big difference.
It is clear how mass retailers can take advantage of globalization, but what about the American workers who used to work for the manufacturers that have been forced to look for lower cost labor abroad?
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Wal-Mart has used the increasingly competitive global marketplace to their advantage. Other major retailers are doing the same thing.
But the companies that are criticizing Wal-Mart are not competitors, but suppliers, manufacturers. That makes a big difference.
It is clear how mass retailers can take advantage of globalization, but what about the American workers who used to work for the manufacturers that have been forced to look for lower cost labor abroad?
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