Global stratification is an integrated economical network, established by globalization of work and labor, hugely influencing the economical growth of all countries. Countries classified as High income or First World Countries, like US, New Zealand, Australia, Japan, and Western European countries considered as core countries, dominate the world economy by defining their own rules, regulations and culture. Mostly Second world or Mid Income countries, and low income or Third World countries like China, Soviet Union, Korea, and other Asian countries, which are considered peripheral countries, financially and politically depend upon these economically advanced countries, abiding the rules and regulations established by them. [1]
High Income nations, like US consist of Multi National companies, which cheaply purchase Low Income countries’ labor, globalizing the work network. Wal-Mart is one such Multi National Company with more than 10,000 stores and offices, employing more than 2.2 million associates worldwide, operating in 27 countries, [2] approximately earning $244 billion in revenue, more than any other U.S. company ever did. It spent millions of dollars for NAFTA to push the American jobs to other countries. [3]
For attracting customers, Wal-Mart has all necessities, under its roof, even a salon, and a small eatery, destroying local downtown culture, and regular shopping experience with small independent shops. Therefore, local culture has also suffered by Wal-Mart’s boxed community concept. Wal-Mart squeezes local manufacturers so much on prices that they cannot afford further manufacturing.[4] However, fedgazette findings prove Wal-Mart to be beneficial to rural communities, with cheap merchandise, and more job opportunities for local population.
Sam Walton, founder of Wal-Mart preferred selling the cheapest merchandise, forcing lower costs around the market. In its constant efforts to maintain cheaper prices, Wal-Mart gradually entered the domain of globalization, by hiring cheap labor overseas. Paying a fraction of an average US wages, to a Chinese laborer, as Chinese Labor laws are not so strong, Wal-Mart then sells cheap goods in US, bringing in more customers. US economy strengthens as a positive impact, at the cost of much increase in global stratification. However, it negatively influences the job market in US. An average American’s rightful job is gone to a multitude of cheap laborers in China. According to the Economic Policy Institute, Wal-Mart’s trade with China alone eliminated 133,000 U.S. manufacturing jobs between 2001 and 2006 and accounted for 1.8 million of the nation’s total job loss, adversely influencing United States in the end. [5] Besides, Wal-Mart locally hires illegal immigrants, and senior citizens for minimum labor charges. As most of the Wal-Mart employees and their families get insurance by Medicaid, Wal-Mart saves money from medical benefits, costing more to US taxpayers.
Since the company does not share its increased economic profit with its workers, and further contributes in financial differences in community, the Walton family, and the CEO of the company earn more in a single hour, than a full-time Wal-Mart employee cam make in a year [6]. Wal-Mart definitely proves, to be the ‘winner’ over the complications of Global Stratification and Outsourcing.
Works Cited
[1] Andersen L. Margaret, Taylor Francis Howard. Sociology with Infotrac: Understanding a Diverse Society. 4th ed., Wadsworth Publishing;. 22 February 2007: 147-151. Print. 14February 2013.
[2] “History Timeline”. corporate.walmart. n.p., n.d. Web.16 February 2013.
[3] Bethany Moreton. “To Serve God and Wal-Mart: The Making of Christian Free Enterprise”. Harvard University Press: 7 September 2010. Print.14 February 2013
[4] Traub, Amy. “Not made In America: Top Ten Ways Wal-Mart Destroys US Manufacturing Jobs”. demos.org, 2nd July 2012.Web. 15 February 2013.
[5] Scott Robert E., “The Wal-Mart Effect,” Economic Policy Institute, 27th June2007. Web.15 February 2013.
[6] Michael. “Is Wal-Mart Destroying America? Facts about Wal-Mart That Will Absolutely Shock You”. theeconomiccolapseblog, 4th July 2012. Web. 16 February 2013.
