Wal mart

Question 1

Distribution?

Answer 1

• largest retail tnc globally with headquarters in the us
• more stores opened nationally due to acquisition of other companies such as seiyu in Japan
• HQ in Arkansas but manufacturing in china
• expanding into emerging economies such as India opening new outlets with Bharti Enterprises in the style of Walmart stores

Question 2

Economic impacts in the US?

Answer 2

• many jobs generated for low skilled workers (750,000)
• cheaper so people have more disposable income
• 400,000 manufacturing jobs lost
• smaller businesses can’t compete (82 closed in the first 2 years of Walmart opening)

Question 3

Social impacts in the US?

Answer 3

-more people have income so better access to healthcare
- Walmart doesn’t provide healthcare benefits so people still have to rely on state
- accused of poor working conditions

Question 4

Environmental impacts in the US?

Answer 4

• produces huge amounts of CO2 as located outside urban areas where land is cheaper so people have to drive there
• opened new green stores that use renewable energy
• generates 2.1 million tonnes of packing waste annually

Question 5

Economic impacts in host countries?

Answer 5

• jobs created that may pay more compared to local companies
• Walmart works with over 6000 Canadian farmers
• criticised for forcing suppliers to accept lower prices
• profits return to the US

Question 6

Social impacts in host countries?

Answer 6

• offers skilled jobs e.g. mangers in less developed countries
• donates money to improve health and environment in host countries e.g. $2 million in West African Communities after natural disasters
• more reliable wage

Question 7

Environmental impacts in host countries?

Answer 7

• uses large areas of land
• annual carbon emissions of 298 million tonnes

Question 8

Unequal flows of money and people?

Answer 8

• money all goes back to the hq country which increases development gap
• complex schemes to avoid paying taxes so local councils have less to spend on development
• Brain drain as skilled workers move to HICs for better jobs
• internal migration to cities in developing countries causes overcrowding etc
• highest payed roles reserved for those in home country
• 400,000 jobs lost in the US as manufacturing is outsourced