blog




  • Essay / The dependence of Walmart's success on international trade

    Walmart is one of the largest companies in the world. They sell pretty much everything you might need on a daily basis and are mostly open 24/7, except at Christmas. Without international trade, Walmart would not be where it is today. Most of its trade comes from China. Walmart also announced earlier this year that it would raise its starting minimum wage to $11 an hour this year. This political decision made it very difficult for anyone to follow them from today on. Walmart is present in 26 other countries in addition to the United States. Its 2,300 stores in 2013 in Mexico have made it a formidable regional integration platform for workers migrating from a small town to a big city. Say no to plagiarism. Get a custom essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay An online article in Seeking Alpha written by Zoltan Ban states: “Walmart is by far the largest US importer, so it is very dependent commercial relationships. with the rest of the world, but especially with China” makes it very clear that without any type of international trade, America would not be America's largest importer of goods. The article details how much Walmart depends on its excellent trade relationship with China. In 2016, 70 to 80% of its suppliers came from China” (Ban). In our textbook on page 133, he explains how Walmart and its incredible global expansion contribute to international commerce. We may not notice it, but going to Walmart for just one thing is always a hassle, at least for me. For example, I went to Walmart to buy my son some diapers but ended up buying headphones that were on sale for only $20 and that trip that would have cost me $25 (diapers) turned into in $45. Most of our electronics, yes even our brand name electronics, are made in China for next to nothing and Walmart can reduce prices by buying in bulk and purchasing for all of its 5,000 stores in the United States. The article “Walmart's Shiny New $11 Minimum Wage Isn't Really A Result of the Tax Law” by Maxwell Strachan explains how, due to a recently passed new tax law, Walmart increased its minimum wage by $11 per hour and will award bonuses ranging from $200 to $1,000 (Strachan). Depending on the state you live in, the starting salary can range from $7.25 to $10.10. People argue that you can't live on minimum wage, that minimum wage isn't supposed to just be a starting point for growing within a company and excelling. Politics plays a major role in deciding who gets paid what. Thanks to the new tax law, Walmart was able to give its employees approximately $11 million between all of their current employees. On page 158 of our book it is explained how political reasons can affect the free trade market. By raising its minimum wage, Walmart can easily convince a person to work for Walmart rather than another big box store and can even, in some cases, move employees from another store to get better pay. The article "The Challenges Wal-Mart Faces in Mexico and China" By Team Trefis explains that Walmart's slow growth in 2013 was not very good for the company, but having almost 2,300 stores in the country was important to work towards improving the market. The article also states that due to Mexico's weak economy, its slow growth will take a toll on Walmart. Of.