Walmarts Economic Effects

Walmart s Economic EffectsPositive EffectsWalmart is the world s largest seller and second-largest corporation It caters an estimated 20 of the retail grocery and consumables business . The Stores Division of Wal-Mart accounts for 67 .2 of net gross revenue . As a huge company that has numerous military unit requirements , it provides employment to legion(predicate) citizens in the US alone and cardinal of thousands more in its foreign operations . Moreover , because of its word meaning an employment policy of no discrimination , it has become the largest employer of minorities , teenagers , and study(postnominal) citizens in the world . Because of this , it greatly partakes in a major socio political issue of maintaining productivity of citizens and providing health insurance to many citizens . As a publicly held company , employees are referred to as associates in to reflect their shared corporate interest and responsibility towards WalmartFor its international operations , Walmart has wholly owned international subsidiaries in Canada e .g . Woolco Division , majority owned subsidiaries e .g . Walmex in Mexico and joint ventures e .g . Bharti Enterprises in India . For its continued and rapid globalization , it has established a Global Ethics Office to invoke ownership of Wal-Mart s ethical culture to all stakeholders globally . The organization s ethical work culture provides the depth of its quality attend to (Wheelen , T .L and Hunger J . D , 2006 Low Prices is Wal-Mart s interchange point . It caters to price-sensitive consumers e .g . price sensitive affluent , stag aspirational and value-price shoppers or the mortifieder class of consumers Quality goods at small-scale price is the basic business model it uses which it instills among its employees , including its acquired companies for its international operations . It s popular private label store brands include : surface-to-air missile s Choice and Great ValueNegative EffectsTo provide commodities at low prices , Walmart uses all-encompassing foreign product importation . Its major trading coadjutor i .e . China to which approximately 60 of its products are mint is highly criticized for piracy .

Its continued reliance or patronization on China can overshadow the drastic repercussions of piracy on the US economyFurthermore Walmart is afford to continually maintain lower prices because of oligopsony , a market structure where there are a small(a) number of buyers i .e . traders / retailers (Nargundkar , 2006 , p324 ) Being the largest buyer permits it to control a big share of the market thereby giving it force-out to push down or limit the prices of its suppliers . This promotes unfair trade competition within the industry . Hence competitive low price of Walmart is often criticized as predatory pricing , which is anti competitiveFinally , while Walmart pursues anti discriminatory policy of hiring , it has been criticized and sued for its policy against jab unions . It also implements personnel practices that are discriminating in its overseas employment . For instance , strict work policies against dating among employees were criticized in countries such as GermanyREFERENCESGreene , W .L . 1996 . Predatory Pricing . ND : American Bar Associationhttp /www .walmart .comNargundkar , R . 2006 . Services merchandising : Text Cases . Tata McGraw-Hill p324Wheelen Thomas L...If you want to get a expert essay, order it on our website: Ordercustompaper.com

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