Is Walmart Good For America Essay

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Is Wal-Mart Good for America?

1. What does the documentary “Is Wal-Mart Good for America” illustrate about the business environment at the time?
The documentary chronicles the business environment during the early 2000’s. During this period corporations began to take hold of opportunities; in more open global trade markets and increased efficiency by application of new information technology. New customers to sell to emerged, as well as cost effective manufacturing labor forces that could be exploited to aid in increasing profits. Wal-Mart and other global retailers, as Prof. Gary Gereffi states, changed the business environment from one of mainly supplier dependency to one of buyer dependency. As companies like Wal-Mart could now set …show more content…
The buying practices did not change as they continued to import goods for their stores from outsourced suppliers. Founder Sam Walton would fly overseas to find low cost products they could sell in there stores.
6. List the arguments in favor of outsourcing and against it.

Outsourcing is favorable as it opens up a company to the global market, the cost of labor is cheaper, and there is good quality manufacturing. Leading to low prices for consumer goods.
Arguments against outsourcing are that America is importing more than it is exporting. Leading to a large trade deficit that increases each year. Also the closing of American manufacturing plants which in some instances sustain entire cities. Leading to unemployment and dependence on retailers like Wal-Mart, because they offer low prices. To be able survive those unemployed need to shop at Wal-Mart as they cannot afford much else on a tight budget, if they budget at all. 7. How would you describe Walmart’s business model? Who do you think gains the most from Wal-Mart's business model? Explain

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