Create a 2 pages page paper that discusses wal-mart to spend $50 billion on products made in america. Wal-Marts move to increase its sourcing from goods made in the United s Wal-Mart has decided to source more goods locally in the next ten years for an estimated budget of $50 billion. This is contrary to its well-known strategy of sourcing from foreign markets. Objections from Wal-Marts criticsWal-Marts critics objected to the use of foreign suppliers because they felt that Wal-Mart was exploiting these foreign suppliers unfairly. Another thing that informed Wal-Marts critics to its former strategy is their stance that Wal-Mart was not being patriotic to its home country. I disagree with critics objection that it was exploiting foreign suppliers unfairly because it is the prevailing economic forces in Wal-Marts foreign market that attract it to them. Wal-Mart should however source goods locally because it would demonstrate its esteem in the production capacity and economic wellbeing of the United States (ABC News p2). Social implications of Wal-Marts announcementLocal manufacturers are one of the groups that stand to benefit from Wal-Marts decision to source goods in the United States. 1881 Mills is one such manufacturer that will benefit from the extended contract that it has struck with Wal-Mart. Suppliers dealing in highly-automated production are the other group that will benefit from Wal-Marts move. The public stands to benefit from the additional jobs that will be created by these local manufacturers and suppliers in order to meet Wal-Marts increased demand. The economy of the United States will benefit from the improved production that this move will bring (ABC News p3). Wal-Marts obligation to workers in its foreign marketsWal-Mart has an obligation to provide workers in China and other foreign markets who will be displayed by Wal-Marts new strategy with time to adjust and find other jobs. Corporate social responsibility would require that as an employer, Wal-Mart should factor in the welfare of the people who will be affected by any of its policy decisions and one such group of people are these workers. Wal-Mart should care not to terminate its foreign sourcing quickly because this would leave many of these foreign workers jobless. This can have devastating effects on the lives of these workers and, by extension, the economies of their countries (ABC News p3). Implication of Wal-Marts decision on consumersWal-Marts decision to source more goods locally means it might have to charge more for such products and this will have direct impacts on local consumers. This will dig deeper into my consumer surplus and I might have to consider buying certain goods from other stores. I however have an ethical responsibility to buy U.S.-made products even if they cost more because this will contribute to the growth of the economy of my home country. Ethical responsibility requires that as a consumer, I should go beyond caring for my personal financial wellbeing to considering how my buying patterns influences other people and the nation at large (ABC News p4).Implications of Wal-Marts announcement on the industryIn conclusion, Wal-Marts announcement might raise the domestic competition amongst retailers. This is because sourcing goods locally will be viewed by Wal-Marts move as one aimed at increasing its popularity among Americans and by extension, its local market share. Competitors like Target might react to Wal-Marts announcement with apprehension that might make them to lower their pricing to compete with Wal-Marts relatively low prices (ABC News p4). Target also competes with Wal-Mart on style and it might have to diversify its style. Wal-Marts announcement might also force other companies to consider a similar strategy in order to get a similar market share in the home country. Work CitedABC News. Wal-Mart to spend $50 billion on products made in America. ABC NEWS, January 15, 2013 . Retrieved on June 5, 2014 from http://abcnews.go.
Create a 2 pages page paper that discusses wal-mart to spend $50 billion on products made in america.
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