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Unformatted text preview: Essay #6-China & Wal-Mart Wal-Mart plays an integral role in the development of the special Pearl Rive Delta region of China (Shenzhen/Guangdong) area of China. Wal-Mart has benefited form the low or no tax region, loose work rules and quickly developing infrastructure (ports, highways) that the Chinese government has been to quickly and happy to build. The Wal-Mart world buying headquarters is in Shenszhen and although there are 11 stores in the province the majority of the goods built here are shipped to America. Many of Wal-Marts suppliers have Chinese governmental investment, but also the Chinese government wants to support the continued growth of Wal-Mart and other multinationals doing business in China. A compliant workforce, stable political situation, stable currency are all nearly as important as low costs. Lichtenstein-2 Wages are low, but Wal-Mart and the brands it sells insist that the work standards are high. Nike and Reebok are proud to show off their model dormitories and recreation centers on site of their factories. Much like workers in the 1940s on in America, the factory workers of the Pearl River Delta are from poor farming regions and must stay for months at a time in the manufacturing region sending money home because, though at $100/month this is still a huge improvement from the poor farming communities these workers left. Unlike the brands (Nike etc) Wal-Mart does not need the great corporate association that they need for the American consumer to buy their products, as they are just passing the goods...
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This note was uploaded on 05/19/2008 for the course ILRIC 4330 taught by Professor Turnerl during the Spring '06 term at Cornell University (Engineering School).
- Spring '06