SOC326 7-23-08 - -Loss of jobs in those companies.-Opening...

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SOC 326 7-23-08 Globalization and Multinational Corporations -Globalization -Economic globalization entails all aspects of the world economy being integrated or interdependent on a global scale. -Goods and services -Labor/Workers -Information -Capital and Investments -Capital is more mobile -Some examples of contemporary economic globalization -Increasing connections between societies. -Global presence of icons/brands (McDonalds). -Global products (American movies). -Integrated financial markets. -Growth of MNCs. -Fortune Global 500 -60 Minutes Documentary -Potential short answer question of exam. -Citing examples from the film, what is the impact that Wal-Mart has on American workers due to globalization? -Hint: think about direct and indirect effects. -Low price=low wages -Was a revolution in productivity. -The retailer (Wal-Mart) is more powerful than the manufacturer. -They became the most important customer. -They will drop products if price gets to high. (Rubbermaid). They want low cost, low price.
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Unformatted text preview: -Loss of jobs in those companies.-Opening price point-cheapest item in the line. Draws customers to other items in department even if its not cheapest.-Low cost imports from Asia were vital to Wal-Marts history. Caused Americans to lose their jobs.-To compete in low cost market, you must take part in Asian trades.-Wal-Mart is making local companies to get this market to keep in business with them.-This offshoring caused Americans to lose jobs.-They could produce products for as low as .30 cents an hour. -36 billion come in from China and 3 billion go out. China dont have the income to buy American products which affects the trade deficit.-TV makers were forced to drop prices or lose contracts to competitors in China.-Started antifair/free-trade suits against China. Wal-Mart was Pro-China.-The dynamics of Wal-Marts low price idea is undercutting the American labor economy....
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This note was uploaded on 09/15/2008 for the course SOC 326 taught by Professor D during the Spring '07 term at University of Arizona- Tucson.

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