Preview

Outsourcing, China, and Wal-Mart

Good Essays
Open Document
Open Document
828 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Outsourcing, China, and Wal-Mart
“Outsourcing, China and Wal-Mart”

Wal-Mart, an American corporation boasting “Everyday Low Prices” has expanded and outsourced to include the employment of foreign labor and suppliers to meet their corporation’s demands. In doing this, there are several benefits to utilizing cheap Chinese labor. By using Chinese factory labor, the Wal-Mart Corporation is able to provide goods at low prices, increasing their appeal to the consumer. Also, by using cheap labor in other countries, Wal-Mart expands their corporation worldwide, including opening stores in those countries where the company employs cheap, foreign labor. By using Chinese labor, Wal-Mart is able to maximize its corporation’s profits overseas to the United States, where the price range is much higher. In addition, Wal-Mart’s use of foreign labor benefits the poor, foreign countries, such as China, who seek overseas companies to provide jobs and increase their countries’ capita of export. While there are a number of benefits to utilizing Chinese labor, there are numerous amounts of drawbacks. The consumers of Wal-Mart do not approve of the exploitation of the cheap foreign labor, as the conditions and reality of the factory worker’s’ employment and treatment by the factories that produce goods for Wal-Mart are brought to the public’s eye. Also, Wal-Mart, in utilizing Chinese labor, has outsourced many work opportunities for Americans to China. In addition, Wal-Mart depends heavily on Chinese suppliers, allowing Wal-Mart’s supply to become vulnerable to the consequences of fluctuation in the Chinese market and economy.

Wal-Mart provides deplorable working and living conditions for its workers, including the young women of the factory performing mechanical tasks, such as assembling circuit boards without the use of safety gloves and working long shifts in airless, hot sweatshops without fans. Also, Wal-Mart provides a dormitory for its workers to live in, with the option that you can choose to live

You May Also Find These Documents Helpful

  • Better Essays

    In opposition to this argument, Mallaby claims that critics of Wal-Mart are oblivious if they think Wal-Mart is the worst corporation when it comes to the way that employees are treated. He believes that it depends on what other corporations Wal-Mart is compared to and gives an example of this stating that “Wal-Mart opened a store in Glendale, Arizona, last year, it received 8,000applications for 525 jobs,” suggesting that not all people think that Wal-Mart mistreats its employees and that their benefits or wages do seem appealing to many (Mallaby 621). Though Mallaby does not discuss unions, Olsson targets this topic and mentions that Wal-Mart quickly rids of unions in order to keep opposition away. Commenting on the unions at Wal-Mart, Olsson says, “To protect the bottom line Wal-Mart is as aggressive at fighting off unions as it is at cutting costs” (Olsson 615). Wal-Mart has a main goal of fighting costs to make them lower than their competitors; therefore, fighting off unions is of utmost importance to Wal-Mart. Wal-Mart does not want any opposition and does not want to lose to its competitors. Expanding the issue of working conditions to international relations, Mallaby shows how Wal-Mart: The High Cost of Low Price, the new anti-Wal-Mart movie circulating among activist groups, exploits the mistreatment of the Chinese workers that work for Wal-Mart.…

    • 1246 Words
    • 5 Pages
    Better Essays
  • Good Essays

    When you hear the words low prices it is hard not to think of Wal-Mart. The company that revolutionized discount shopping. But what happens behind the scenes? How is it that the world’s largest retail chain can offer so many deals? In the last 20 years the anti-Walmart campaign seems to continuously be on the minds of many. Sebastian Mallaby and Karen Olsson share radically different views on the ethics of the Wal-Mart Corporation. In “Up Against Wal-Mart” we are forced to believe that Wal mart is a vicious company that shows no remorse when firing employees and cutting their benefits. The author produces factual information and eyewitness accounts pointing to these horrible deeds that the large corporation run by money hungry businessmen have cheated many employees out of proper wages, proper benefits and even their jobs. While Sebastian Mallaby depicts Wal-Mart like the average American company. In his article “Progressive Wal-Mart. Really.” He states that while Wal-Mart is responsible for many questionable deeds, they are merely doing what they have to in order to survive.…

    • 1238 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Up against Wal-Mart

    • 1555 Words
    • 7 Pages

    Karen Olsson believes that Wal-Mart, the world’s largest retailer company, under pays their employees for the amount of work they do daily. They do not offer good working conditions for their employees or enough medical benefits to support themselves and their families. Sebastian Mallaby says that Wal-Mart is not wrong for the way that they run their business; he feels as though Wal-Mart does their consumers a favor by keeping the wages low and offering “low prices” (620). It’s just business! They have to do what it takes to remain the world’s top retailer and continue to, “enrich shareholders, and put rivals out of business” (620). Karen Olsson and Sebastian Mallaby both address the topic of big business in today’s economy, but I find Karen Olsson’s argument to be the most persuasive because she has more information and quotes to support her opinion and views of the way that Wal-Mart treats their workers, while Sebastian Mallaby’s article is quite the opposite. Their opinions are very different but they share common interests which are: Wal-Mart, their customers, and their workers.…

    • 1555 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Wal-Mart 's army of around 3,400 stores has created some job opportunities, but think of all the jobs lost due to choking out small locally owned businesses as well as the thousands of factory jobs lost due to Wal-Mart 's low production demands. Wal-Mart 's size, convenience, as well as its variety of over 120,000 items makes Wal-Mart a fierce competitor to any business. Due to Wal-Mart being built in the majority of cities and towns no matter the social status, many striving small businesses cannot compete with Wal-Mart 's unbeatably low prices and convenience and are forced to terminate their business. This may be an example of "survival of the fittest", but this process is hurting the economy. Eighty percent of Wal-Mart 's suppliers are from China and that means the more Wal-Mart 's there are, the more foreign products floating around, and less American made production (Is Wal-Mart Good for America). This lack of American production is what causes American factories to shut down leaving their employees without jobs. Even if these employees decided to work with Wal-Mart, they would make around half of their normal salary, as well as no pension, health care, or the job security benefits that have been the norm in factory work. "A…

    • 1034 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Frontline offers two harshly contrasting images: one of Circleville, Ohio, where the local TV manufacturing plant has closed down; the other -- a sea of high rises in the South China, Shenzhen. For Wal-Mart, China has become the cheapest, most reliable production platform in the world, the source of up to $25 billion in annual imports that help the company deliver everyday low prices to 100 million customers a week. But while some economists credit Wal-Mart's single-minded focus on low costs with helping contain U.S. inflation, others charge that the company is the main force driving the massive overseas shift to China in the production of American consumer goods, resulting in hundreds of thousands of lost jobs and a lower standard of living here at home…

    • 733 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart gives their customers more advantages than disadvantages, when those customers receive low income. As the advantages outweigh the disadvantages, they include low prices, a variety of goods, and jobs that people are willing to work for. These attributes that Wal-Mart possesses are often overlooked but cannot be denied once shown. It gives people an option to fall back on when in need, and is able to grant a more enjoyable way of living. Despite all of the controversy, Wal-Mart is good for…

    • 888 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    A single trip to Wal-Mart can show the power of China 's economy. The tags on most of the retail items in the store have the familiar "Made in China" stamp. By simply watching the news over the past decade, Americans know that the reason the U.S. imports so much of its merchandise from China is because Chinese companies can pay their workers far less to manufacture goods than American companies can.…

    • 1036 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Labouring the Walmart Way

    • 326 Words
    • 2 Pages

    2 One of the most frequent complaints about Walmart, which employs 1.4 million people worldwide, is its failure to pay workers a living wage. Store employees are paid 20-30 percent less than the industry average, making many of them eligible for social assistance. It is estimated that American taxpayers fork out $2.5 billion a year in welfare payments to Walmart employees (Head, 2004). Because the retailer hires hard-to-place workers, like recent immigrants, seniors, and single mothers, its employees are often afraid they will not find work elsewhere. The kind of work Walmart does offer is gruelling: stores are intentionally understaffed-the strategy behind the company's legendary productivity gains-so that existing employees will work harder (Head, 2004). It is alleged that systemic discrimination against women within the corporation has denied the majority of Walmart workers the chance at promotion, a charge that is now the subject of the largest civil-rights suit in U.S.…

    • 326 Words
    • 2 Pages
    Good Essays
  • Good Essays

    It is full of unequal divisions, and we are in constant completions for Power, Wealth and Prestige at the expense of others. As seen in the documentary shown during class, Frontline explores the relationship between U.S. job losses and the American consumer's insatiable desire for bargains in "Is Wal-Mart Good for America?" Through interviews with retail executives, product manufacturers, economists, and trade experts, correspondent Hedrick Smith examines the growing controversy over the Wal-Mart way of doing business and asks whether a single retail leader has changed the American economy. "Wal-Mart's power and influence are awesome," Smith says. "By figuring out how to exploit two powerful forces that converged in the 1990s -- the rise of information technology and the explosion of the global economy -- Wal-Mart has dramatically changed the balance of power in the world of business. Retailers are now more powerful than manufacturers, and they are forcing the decision to move production offshore." Wal-Mart destroys more jobs than it creates. With its low prices and huge collection of foreign good drives local businesses to the ground. Simply because they cant compete with Wal-Mart's competitive prices. A new Wal-Mart destroys jobs by putting local merchants out of…

    • 994 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Walmart is the largest retailer in the universe and has the most jobs in the private sector currently. They presently have more than 2.2 million people employed worldwide. With a large amount of money, stores, and influence, they have been part of thousands of legal issues. Over the past 10 years, Walmart has put out of business a number of individuals by having the same products at a lower price. They have not only shut down a number of businesses due to the undercutting of competitor prices but they also made a great deal of people lose higher paying jobs during their expansion to pay their employees very low wages with marginal benefits (Logan 2014). Walmart has seen a great deal of external social pressures however we will focus on the external social pressures they have encountered due to their direct effect on the economy. Since Walmart is a big factor in regards to the economy a number of people look to them for assistance in acquiring a job. Nonetheless, Walmart has impacted the economy by not offering well-paying jobs to employees and having very…

    • 977 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Walmart Impact On Society

    • 1218 Words
    • 5 Pages

    As the largest retailer in America, Walmart has been called “one of the most impactful organizations in the history of humanity” (Roberts 1); however, we must ask ourselves what type of impact Walmart is making. Because they are such a large corporation, Walmart has the power and ability to greatly influence our society either for the good or for the bad, and most people agree that their impression on our current society is a negative one. There is lots of controversy over the ethical and economic repercussions our country faces because of Walmart. It is evident to most people that Walmart negatively impacts communities, treats employees unfairly, and facilitates child labor in American and abroad.…

    • 1218 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Immediately after watching the Frontline piece, “Is Wal-Mart good for America?” I felt that Wal-Mart was wrong for some of the things they are doing. The movie focused on how Wal-Mart was hurting American businesses, leaving many people without jobs. They do this by forcing their suppliers into meeting their price demands, which in turn leaves the supplying company’s managers with no choice other than to cut prices at all cost. Cutting the cost of raw materials can only account for part of the manager’s solution, next is employee wages and benefits and eventually out-sourcing the labor all together. However, after analyzing the situation further and doing more research I feel that Wal-Mart is doing more good than harm.…

    • 749 Words
    • 2 Pages
    Better Essays
  • Satisfactory Essays

    To be able to keep the prices low Wal Mart is no stranger to using foreign labor. "The sweatshop conditions in which thousands of employees of Wal-Mart 's suppliers routinely work, and the depressive effect that Wal-Mart has on working-class living standards here in the United States, are receiving increasing scrutiny"(1) No where in the US can you own a sweatshop. The sweatshop labor is cheap to run and is one way that they can keep the price down. "The truth is that Wal-Mart has let America down by lowering wages, forcing good paying American jobs overseas, and cutting costs with total disregard for the values that have made this nation great."(3)…

    • 729 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    It states that Walmart puts many smaller businesses out of service. A recent study by David Neumark of the University of California at Irvine and two associates at the Public Policy Institute of California, "The Effects of Wal-Mart on Local Labor Markets," uses sophisticated statistical analysis to estimate the effects on jobs and wages as Wal-Mart spread out from its original center in Arkansas. The authors find that retail employment did, indeed, fall when Wal-Mart arrived in a new county. It's not clear ... whether overall employment ... rose or fell ... But it's clear that average wages fell. (Found off of a website on Google) Walmart workers do not get paid enough money either. The wages that Walmart employers are paid ranges from $7.50-$9.00, and that's even when people have been working there for quite a while. (Found on Google) Wal-Mart wields its power…

    • 723 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ever since its existence, much controversy and debate have surrounded the benefits and downfalls of the Wal Mart corporation within society. The purpose of this précis is to summarize the article “Wal-Mart and Country-Wide Poverty” by Stephen J. Gotez and Hema Swaminathan. “Wal Mart” is the most successful “Big box” retailer in the world with 4750 stores worldwide and 3,600 in the United States. Much of its success arises from the fact that it offers lower prices to consumers. At face value this is a good thing because it makes consumer goods more easy to purchase, therefore encouraging people to spend money and stimulate the economy. This has been proven to reduce annual inflation rates, lower the absolute…

    • 447 Words
    • 2 Pages
    Good Essays