UNDERSTANDINGS OF GLOBALIZATION GLOBALIZATION: HOW DOES IT INFLUENCE MY LIFE Economic Impacts Economic Impacts Social Impacts Social Impacts Political

UNDERSTANDINGS OF GLOBALIZATIONUNDERSTANDINGS OF GLOBALIZATION

GLOBALIZATION: HOW GLOBALIZATION: HOW DOES IT INFLUENCE MY DOES IT INFLUENCE MY

LIFELIFEEconomic ImpactsEconomic ImpactsSocial ImpactsSocial ImpactsPolitical ImpactsPolitical Impacts


GLOBALIZATION 101GLOBALIZATION 101 The reality of the world yesterday, The reality of the world yesterday,

today and tomorrow is that no area is today and tomorrow is that no area is entirely self sufficiententirely self sufficient

All nations have surpluses of some All nations have surpluses of some products but shortages of othersproducts but shortages of others

The most obvious example of The most obvious example of interdependence is fresh foodsinterdependence is fresh foods

No climate can sustain all foods, No climate can sustain all foods, every country needs to import certain every country needs to import certain itemsitems


TRANSNATIONAL TRANSNATIONAL CORPORATIONSCORPORATIONS

A simple definitionA simple definition• Companies that operate in two or more Companies that operate in two or more

countriescountries A more complex definitionA more complex definition

• Companies with corporate headquarters Companies with corporate headquarters in one nation and retail or production in one nation and retail or production facilities in a number of other countriesfacilities in a number of other countries

The ultimate questionThe ultimate question• Do transnationals benefit the countries Do transnationals benefit the countries

they operate in?they operate in?


WHAT THE CRITICS SAYWHAT THE CRITICS SAY


A CASE STUDY OF A CASE STUDY OF WALMART WALMART http://

www.statisticbrain.com/wal-mart-company-statistics Wal-Mart is the world’s largest retailer. Wal-Mart is the world’s largest retailer. It is the largest corporation and private It is the largest corporation and private employer in the United States. employer in the United States.

Wal-Mart employs 2.2 million workers Wal-Mart employs 2.2 million workers worldwide and over 1 million in the worldwide and over 1 million in the United States. United States.

Wal-Mart has more than 8,970 stores Wal-Mart has more than 8,970 stores worldwide in 15 countries under 55 worldwide in 15 countries under 55 different namesdifferent names

Sam Walton founded the company in Sam Walton founded the company in 19621962

The Walton family is worth about $150 The Walton family is worth about $150 billion and controls 48% of the company billion and controls 48% of the company stockstock


A CASE STUDY OF A CASE STUDY OF WALMARTWALMARTGROWTH AND SATURATION OF AMERICAN GROWTH AND SATURATION OF AMERICAN MARKETMARKET


A CASE STUDY OF A CASE STUDY OF WALMARTWALMART

Wal-Mart arrived in Canada in 1994 Wal-Mart arrived in Canada in 1994 when it purchased 144 Woolco storeswhen it purchased 144 Woolco stores

Today it employs 90,000 associates in Today it employs 90,000 associates in 379 stores379 stores

In 2012 it sales made it the fourth In 2012 it sales made it the fourth highest revenue company in Canada and highest revenue company in Canada and the highest grossing retailerthe highest grossing retailer

In 2013 and 2014 Walmart saw In 2013 and 2014 Walmart saw competition increase with Target competition increase with Target entering the Canadian marketentering the Canadian market



Wal-Mart supporters would sayWal-Mart supporters would say• There is something that should never There is something that should never

cause one to apologize, low prices and cause one to apologize, low prices and Wal-mart delivers on this criteriaWal-mart delivers on this criteria

• Not only does Wal-mart have low prices, it Not only does Wal-mart have low prices, it causes it’s competitors to lower pricescauses it’s competitors to lower prices

• Wal-mart offers one stop shopping, Wal-mart offers one stop shopping, especially now that it has moved into especially now that it has moved into groceriesgroceries

• Wal-mart is a major employer locally Wal-mart is a major employer locally offering opportunities for students and offering opportunities for students and seniorsseniors



Wal-Mart critics would sayWal-Mart critics would say• Wal-mart uses predatory pricing to Wal-mart uses predatory pricing to

drive local competitors out of drive local competitors out of businessbusiness

• Locals lose their jobs when local Locals lose their jobs when local competitors shut downcompetitors shut down

• Wal-mart is built of low wages, limited Wal-mart is built of low wages, limited benefits, or opportunities for benefits, or opportunities for advancementadvancement

• 80% of items on Wal-mart shelves 80% of items on Wal-mart shelves come from Chinacome from China



Wal-Mart other items to considerWal-Mart other items to consider• In 1970, the country's largest employer was General In 1970, the country's largest employer was General

Motors, with 350,000 workers. Overwhelmingly union, Motors, with 350,000 workers. Overwhelmingly union, they earned $17.50 an hour plus health, pension and they earned $17.50 an hour plus health, pension and vacation benefits and cost-of-living increases. vacation benefits and cost-of-living increases.

• Today, the country's largest employer is Wal-Mart, Today, the country's largest employer is Wal-Mart, with over 1 million US workers. They earn an average with over 1 million US workers. They earn an average hourly wage of $8.00hourly wage of $8.00

Wal-Mart has been subject to criticism by numerous groups and individuals They have protested against Wal-Mart, the company's policies and business practices, including charges of racial and gender discrimination

Other areas of criticism include the corporation's foreign product sourcing, treatment of product suppliers, environmental practices. the use of public subsidies, and the company's security policies.



What is the point that this particular political cartoonist making by their choices? Is the cartoonist being fair? Who would support this viewpoint? Who would oppose it?



What is the point that this particular political cartoonist making by their choices? Is the cartoonist being fair? Who would support this viewpoint? Who would oppose it?


THE VOCABULARY OF THE VOCABULARY OF GLOBALIZATIONGLOBALIZATION

OutsourcingOutsourcing is when a business obtains services or products is when a business obtains services or products used in manufacturing, such as parts for a television set, from an used in manufacturing, such as parts for a television set, from an outside (often overseas) supplier or manufacturer in order to cut outside (often overseas) supplier or manufacturer in order to cut costs.costs.

Offshore CompaniesOffshore Companies conduct most of their business outside of conduct most of their business outside of the country in which they are incorporated. These companies are the country in which they are incorporated. These companies are also known as non-resident companies. also known as non-resident companies.

Push ProductionPush Production is when is when manufacturersmanufacturers of products decide of products decide what to produce, how much to produce and the price of the what to produce, how much to produce and the price of the product.product.

Pull ProductionPull Production is when is when retailersretailers determine what the determine what the manufacturer will produce, how much to produce and the price of manufacturer will produce, how much to produce and the price of the product. the product.

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UNDERSTANDINGS OF GLOBALIZATION GLOBALIZATION: HOW DOES IT INFLUENCE MY LIFE Economic Impacts Economic Impacts Social Impacts Social Impacts Political