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Frontline Explores America’s obsession with discount stores despite massive job lossAmerica’s obsession 3400 Wal-Mart stores 100 million people shop at Wal-Mart stores each week Sales in 2003 topped $256 billion
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Global Procurement Center Based in Shenzhen, China Third busiest port in the world Employs several hundred 80% of Wal-Mart’s 6000 global suppliers are located in China Wal-Mart & China are a joint venture
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Wal-MartWal-Mart is a Discount Store Cheap labor because the jobs are in China China employees make 50 cents a hour, $100 a month Manufacturers a wide array of consumer goods These goods, from clothing to electronics, can be bought at low prices
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Offshore Global Center: China Wal-Mart imports $15 to $30 billion a year of China’s goods
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Result Alteration in United States’ Economy
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How? Coercing the eruption of information technology & global economy Operates the largest satellite system in the world Powerful retailers manipulate production of goods to offshore
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How? Wal-Mart has mastered the process of production, movement of goods, warehousing of goods, ensuring goods arrives on time at the right place, and for a cheap price Developed in-house brands Gain of supply-chain efficiencies by working directly with factories More profit for Wal-Mart
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How does Wal-Mart know what consumers want? Barcodes: Reveals everything about a productBarcodes Information about how often the barcodes are purchased are relayed to the manufactures from Wal-Martbarcodes Hence, the manufacturers are dependent on Wal-Mart for demand information
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What does this mean? The manufacturer becomes dependent and subservient to the retailer, Wal-Mart
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Wal-Mart has created a Monopsy Major buyers for groceries & toys Controls 38% of the market for several goods Manufacturers are forced to sell to them at low prices
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Why? Wal-Mart wants to provide consumers with quality products & low prices
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Why Not? Americans are consumers and workers Americans may receive discounts for quality goods but loose jobs in the process Not only effects U.S. but other countries as well
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Wal-Mart Model of Employment Low-wages Low benefits Low skill Rapid job turnover
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Interview With CEO H. Lee Scott Employee discussion Exploitation vs. opportunities
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Opinions of those who are proponents of opening a Wal-Mart in Ashland, VA
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Those who disagree with opening a Wal-Mart in Ashland
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Sprawl Busters: Helping Average Citizens Discourage Unwanted Development
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