How Walmart is Changing China

I thought that the parallels the author made between Walmart CEO Sam Walton and the Chinese Communist Party’s secretary general, as well as Walmart and the Chinese Government were very interesting. The author states that both leaders have created cult  status in their authoritarian organizations “held together by an elaborate belief system or ideology bordering on the religious.” Furthermore, the advertising, promotional methods and propaganda of both organizations have the same goal in mind: to influence the outside world and prevent dissenting behavior. Each organization proclaims a responsibility to serve: the government has a service to its people while Walmart has a service to its customers. Perhaps the most startling similarly is how both organizations monitor its citizens and its employees and customers to make sure they “stay within the boundaries of ‘correct’ behavior.” 

The article showcased how the strong presence of a successful multinational firm can completely change a culture and its economics. Walmart revolutionized China with an American ideal of “bulk shopping.” The article states that Walmart’s annual revenue is in the top quartile of the GDP of sovereign nations. With such success as a company like Walmart, its power seems unstoppable. Walmart has been able to both change Chinese cultural conventions/preferences as well as adapt to them because of their strong variety and low prices. For instance, while Walmart has created a new type of Chinese consumer with access to electronics and millions of other products, Walmart has also undergone efforts to make their company more environmentally friendly which has been  a step in the right direction for the Chinese consumers disgusted by pollution and in the market for organic foods. A more specific example of how multinational firms, economics and culture interact is Walmart creating the Direct Farm Program that in which Walmart deals directly with the dismantled mandatory collective and commune farmers of the Mao era. Through this interaction, Walmart is able to cut down its supply chain, have better standard control of its food while working with traditional farmers of Chinese culture to promote economical well being of both parties.

Multinational firms have a large presence in the UK because of the nation’s GDP and level of development. Like any other country, multinational firms are going to influence consumer spending, employment and perhaps standards of living. In developing countries, these firms can promote economic growth and surge foreign investment. This then brings jobs to the country, boosts the economy and calls for an increase in teh ability of citizens to purchase and consume. Moreover, governments will often times adapt their policies to be more agreeable for businesses and citizens as it promotes foreign investment. However, multinational firms have also been accused of exploiting local labor and taking advantage of corrupt governments to do unethical business. While there are certainly drawbacks, multinational firms ultimately help to create a more equal playing field in world economic standing. The UK, for instance, is a top developing country with a strong base of multinational firms. Many multinational firms are headquartered in London and thus has helped to promote the city as a financial world headquarters and increase its GDP.