Slides in this set
What is a TNC?
A firm which owns or controls production facilities in more
than one country through direct foreign investment (DFI).
The company doesn't have to own the operations outside the
home country.…read more
· Wal-Mart is a chain of discount department stores including ASDA. Its
one of the largest TNCs in the world and the largest retail TNC (many
other TNCs are oil companies).
· The company first opened in 1962 when Sam Walton opened the first
store in Arkansas, USA.
· Many more stores began to open across Arkansas, and then the US. The
store went onto expand across the globe including Japan (Seiyu), the UK
(ASDA) and Brazil (Bompreco).
· There are currently 8,500 stores in 15 countries under 55 different
· The company divides its labour across a number of different countries.
It's HQ remains in Arkansas, USA, but manufacturing is carried out in
countries where its cheaper to produce i.e. China and India.
· The company has began to expand into NICs such as India which have
huge new markets.…read more
IMPACTS OF WAL-MART
· Provides consumers with a wide choice of goods, e.g. the `supercentre'
stores sell things like garden furniture and car tyres as well as food
· Many stores are open 24/7, so consumers can shop when they like.
· Many stores are poorly paid with few benefits e.g. health care, so
employees have to rely on state benefits.
· In California in 2004, its estimated that the state needed to pay out
$86m to Wal-Mart employees.
· Wal-Mart had been accused of poor working conditions. I.e. in 2005
Wal-Mart had to pay out £$172 in compensation because some
employees had been denied meal breaks.…read more
· Employment- each new store creates jobs, e.g. Vineland (USA) opened
in 2009, creating 700 jobs.
· Low prices- Wal-Mart is one of the cheapest supermarkets in the USA.
· Decline in Manufacturing industry Wal-Mart buys lots of products
from suppliers outside of the USA, e.g. electronic goods from China
and Malaysia, which has caused a loss of manufacturing jobs in the
· Loss of small/local businesses Wal-Mart stores can cause smaller
stores in areas to shut down as they don't match the low prices.
· This can cause the loss of local jobs, e.g. it is estimated that for every
100 jobs created at a new Wal-Mart, 50 retail jobs are lost from local
businesses over the next five years.…read more