Wal-Mart to Open 30 New Stores in China

GENA Project:

Wal-Mart to Open 30 new stores in China

Summary:

Wal-Mart is a US retail store that has plans to open 30 new stores in China. This article is about the opening of new stores in China and also remodeling 400 or so other stores in the country. This article seems to be a non-biased opinion that states the good and bad views of Wal-Mart and their outsourcing overseas. China already makes a very large amount of Wal-Mart products as it is and now they will have a lot more stores too. The US retail store has been in China for 17 years now and they are investing over $80 million to the foreign country. The goal for Wal-Mart is to strengthen their business foundation to enable their long tern development in China. Other foreign Wal-Mart stores already have or are planning to close, such as locations in France, British and even China. There are benefits and there are also downfalls about the US retailer outsourcing their business to China. Wal-Mart has around 6,000 global suppliers while 80 percent of them are from China. China is starting to become the biggest producer of high-tech products globally.

Source:

“Wal-Mart to open 30 new stores in China.” The Economic Times.

http://articles.economictimes.indiatimes.com/2013-04-02/news/38218479_1_two-new-stores-walmart-stores-inc-wal-mart

Date: April 2, 2013

Implications for Practice:

Winners:

The Chinese working class: They are defiantly benefiting from Wal-Mart being in their country. We are creating thousands of jobs for the people of China by having our US retail store not only open stores there but most importantly producing the odds there and having them exported to the Wal-Mart stores in the US for much cheaper. The amount of product (80% of all foreign Wal-Mart products) is huge. This is helping the Chinese workers stay employed.

The Chinese Economy: Having Wal-Mart produced and sold in China is boosting their economy. It helps keep business flowing so that they are able to keep more stores in business while many of US stores are having to close their doors. Jobs make money. To keep an economy going, people need money and by creating jobs, China is keeping their unemployment rate down in this trade.

Consumers: By having most of the Wal-Mart products produced in China it gives the consumer an advantage. They are able to offer even lower prices because there are no export fees due to the products being made there. This makes everything cheaper so consumers spend more which results in a stronger economy.