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

UNDERSTANDINGS OF GLOBALIZATION GLOBALIZATION 101 The reality of the world yesterday, today and tomorrow is that no area is entirely self sufficient The reality of the world yesterday, today and tomorrow is that no area is entirely self sufficient All nations have surpluses of some products but shortages of others All nations have surpluses of some products but shortages of others The most obvious example of interdependence is fresh foods The most obvious example of interdependence is fresh foods No climate can sustain all foods, every country needs to import certain items No climate can sustain all foods, every country needs to import certain items

UNDERSTANDINGS OF GLOBALIZATION TRANSNATIONAL CORPORATIONS A simple definition A simple definition Companies that operate in two or more countriesCompanies that operate in two or more countries A more complex definition A more complex definition Companies with corporate headquarters in one nation and retail or production facilities in a number of other countriesCompanies with corporate headquarters in one nation and retail or production facilities in a number of other countries The ultimate question The ultimate question Do transnationals benefit the countries they operate in?Do transnationals benefit the countries they operate in?

UNDERSTANDINGS OF GLOBALIZATION WHAT THE CRITICS SAY

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART Wal-Mart is the world’s largest retailer. It is the largest corporation and private employer in the United States. Wal-Mart is the world’s largest retailer. It is the largest corporation and private employer in the United States. Wal-Mart employs 2.2 million workers worldwide and over 1 million in the United States. Wal-Mart employs 2.2 million workers worldwide and over 1 million in the United States. Wal-Mart has more than 8,970 stores worldwide in 15 countries under 55 different names Wal-Mart has more than 8,970 stores worldwide in 15 countries under 55 different names Sam Walton founded the company in 1962 Sam Walton founded the company in 1962 The Walton family is worth about $150 billion and controls 48% of the company stock The Walton family is worth about $150 billion and controls 48% of the company stock

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART GROWTH AND SATURATION OF AMERICAN MARKET

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART Wal-Mart arrived in Canada in 1994 when it purchased 144 Woolco stores Wal-Mart arrived in Canada in 1994 when it purchased 144 Woolco stores Today it employs 90,000 associates in 379 stores Today it employs 90,000 associates in 379 stores In 2012 it sales made it the fourth highest revenue company in Canada and the highest grossing retailer In 2012 it sales made it the fourth highest revenue company in Canada and the highest grossing retailer In 2013 and 2014 Walmart saw competition increase with Target entering the Canadian market In 2013 and 2014 Walmart saw competition increase with Target entering the Canadian market

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART Wal-Mart supporters would say Wal-Mart supporters would say There is something that should never cause one to apologize, low prices and Wal-mart delivers on this criteriaThere is something that should never cause one to apologize, low prices and Wal-mart delivers on this criteria Not only does Wal-mart have low prices, it causes it’s competitors to lower pricesNot only does Wal-mart have low prices, it causes it’s competitors to lower prices Wal-mart offers one stop shopping, especially now that it has moved into groceriesWal-mart offers one stop shopping, especially now that it has moved into groceries Wal-mart is a major employer locally offering opportunities for students and seniorsWal-mart is a major employer locally offering opportunities for students and seniors

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART Wal-Mart critics would say Wal-Mart critics would say Wal-mart uses predatory pricing to drive local competitors out of businessWal-mart uses predatory pricing to drive local competitors out of business Locals lose their jobs when local competitors shut downLocals lose their jobs when local competitors shut down Wal-mart is built of low wages, limited benefits, or opportunities for advancementWal-mart is built of low wages, limited benefits, or opportunities for advancement 80% of items on Wal-mart shelves come from China80% of items on Wal-mart shelves come from China

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART Wal-Mart other items to consider Wal-Mart other items to consider In 1970, the country's largest employer was General Motors, with 350,000 workers. Overwhelmingly union, they earned $17.50 an hour plus health, pension and vacation benefits and cost-of-living increases.In 1970, the country's largest employer was General Motors, with 350,000 workers. Overwhelmingly union, they earned $17.50 an hour plus health, pension and vacation benefits and cost-of-living increases. Today, the country's largest employer is Wal-Mart, with over 1 million US workers. They earn an average hourly wage of $8.00Today, the country's largest employer is Wal-Mart, with over 1 million US workers. They earn an average hourly 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.

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART 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?

UNDERSTANDINGS OF GLOBALIZATION A CASE STUDY OF WALMART 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?

UNDERSTANDINGS OF GLOBALIZATION THE VOCABULARY OF GLOBALIZATION Outsourcing is when a business obtains services or products used in manufacturing, such as parts for a television set, from an outside (often overseas) supplier or manufacturer in order to cut costs. Outsourcing is when a business obtains services or products used in manufacturing, such as parts for a television set, from an outside (often overseas) supplier or manufacturer in order to cut costs. Offshore Companies conduct most of their business outside of the country in which they are incorporated. These companies are also known as non-resident companies. Offshore Companies conduct most of their business outside of the country in which they are incorporated. These companies are also known as non-resident companies. Push Production is when manufacturers of products decide what to produce, how much to produce and the price of the product. Push Production is when manufacturers of products decide what to produce, how much to produce and the price of the product. Pull Production is when retailers determine what the manufacturer will produce, how much to produce and the price of the product. Pull Production is when retailers determine what the manufacturer will produce, how much to produce and the price of the product.