About Walmart

[Ashley]

I live in Japan but not in the USA.

I was told today that a country will be governed and influenced by whoever dominates the retail industry which influences much on that country's economy.

Is it true?

To my knowledge, Walmart is a gigantic enterprise in retail industry in USA. Do they have anything to do with the US government or is US governmental policy and administration heavily influence by Walmart or the retail industry in general?

[Canuckster1127]

I live in Japan but not in the USA.

I was told today that a country will be governed and influenced by whoever dominates the retail industry which influences much on that country's economy.

Is it true?

To my knowledge, Walmart is a gigantic enterprise in retail industry in USA. Do they have anything to do with the US government or is US governmental policy and administration heavily influence by Walmart or the retail industry in general?

Ashley,

That's a pretty big question.

Maybe the best way to answer it would be to ask the same question in reverse. In Japan, do companies like Sanyo, Toyota etc have impact on governmental policy and administration?

Our countries are different and the answers are different to some degree because of culture and governmental structure.

The quick answer is, No. Companies such as Walmart do not have a formal position of power by which to dictate governmental policy and administration.

It's not that simple however. Companies and individuals in the US do have some means they can use to support those political parties that they believe will help them best when they are in power or to keep them in power. So it is common for companies and people within those companies to give donations to political parties and individual candidates.

Ironically, often time large companies will support both parties and give to candidates from both sides. Also, when you have a large based American company such as WalMart, part of the government's job is to monitor and enforce trade agreements that are designed to provide opportunity and fairness of American companies and it sometimes causes things to be blurred.

Making it even more complicated now, is that there are many large multi-national corporations that may have begun in the US but now have major presences all around the world and their size and influence raises them above simple international politics and policies.

A recent statistic that I learned in a Master's course I am now taking is that of the 100 largest economic units in the world, 51 are multi-national corporations and 49 are countries. (going by memory on that, but I think I'm remembering correctly.)

So, that may raise more questions than you are asking, but that is the best answer I know to give.

Bart

[Ashley]

Ashley,

The quick answer is, No. Companies such as Walmart do not have a formal position of power by which to dictate governmental policy and administration.

It's not that simple however. Companies and individuals in the US do have some means they can use to support those political parties that they believe will help them best when they are in power or to keep them in power. So it is common for companies and people within those companies to give donations to political parties and individual candidates.

Ironically, often time large companies will support both parties and give to candidates from both sides. Also, when you have a large based American company such as WalMart, part of the government's job is to monitor and enforce trade agreements that are designed to provide opportunity and fairness of American companies and it sometimes causes things to be blurred.

Making it even more complicated now, is that there are many large multi-national corporations that may have begun in the US but now have major presences all around the world and their size and influence raises them above simple international politics and policies.

A recent statistic that I learned in a Master's course I am now taking is that of the 100 largest economic units in the world, 51 are multi-national corporations and 49 are countries. (going by memory on that, but I think I'm remembering correctly.)

So, that may raise more questions than you are asking, but that is the best answer I know to give.

Bart

Bart,

Thanks. It is subtle analysis to take note of. I like it.

I know that there is anti-trust law in US. In some places, hearings have to be conducted when retail giant plans to open stores in areas which may adversely deprive small stores of their livelihood.

It is similar in Japan.

My corporation have some businesses in China, and things are different in China as my coworkers tell me; they take business trips to China often. They said that Chinese government dislikes their assets and businesses being controlled by foreign enterprise. After they join World Trade Organization, the government actually assists the domestic retailers to merge to form alliances against the foreign players. Their promotional gimmicks are interesting: the assets and ownership can't vest on the foreign players because retail industry is life of the country; who dominates the retail industry dominates the government.

It really sounds exaggerating to me. I figure that even though foreign retailers like Walmart or Carrefour own over 90% of the lands and assets in China opening stores, as long as they are profitable, I find no reason how they can threaten the government by retreating; it would make them lose such a lucrative piece of cake; plus the Chinese government can lease out the land and leasehold for finite period of time to foreign-owned stores; the foreign players can still play no part in posing any threats to government which is always controlled by Communist Party.

Such slogan is almost heresy to people. It occurs to me the Chinese retailing enterpreneur had better be a soldier rather than a merchant. It doesn't make sense at all.

Ashley