case study: a transnational corporation and its global links

•case study: Walmart

•operates discount department and warehouse stores

•total $500 bn revenue and $20 bn profit

•employs 2 million people in 11,000 different outlets in 28 countries

•operates under different names e.g ASDA in the UK and Seiyu in Japan 

•worlds biggest retailer

•130 million shop each week 

•global links

          •it was set up in Arkansas, with rapid growth in the USA and was first abroad in Mexico

          •expanded to China, Canada, Hong Kong, Japan and Britain in the 90’s 

          •it has 500 ASDA stores in the UK, employing 175,000 people

          •African countries for cheap production 

          •China is its largest producer, shipping $18 billion to the USA in 2011

          •finds its cheapest labour in Bangladesh 

•positive effects 

          •lots of new jobs e.g three new stores opened in Argentina, creating 450 new jobs

          •invests in sustainable development e.g 20 stores have solar panels in Puerto Rico 

          •Wal-Mart donates millions to improve health in countries it is based in. e.g. in 2008 in Argentina they donated $80,000 to local projects and help feed 12000 people

          •local companies supply to Walmart, creating $10 bn a year in Canada 

          

•negative effects

          •causes smaller shops to go out of business

          •not all wages are the same e.g $6/hr in the USA but only $1/hr in China

          •some suppler companies work long hours e.g 80 hours a week in Bangladesh - 20 over 

          •the stores take up a lot of land e.g in Hawaii 2100m2