This is in response to FreeandFun's last post.
It is my understanding that at least 10%, if not more, of the trade imbalance with China is due to Wal-Marts purchasing goods
directly from China. In addition to direct purchases from China, Wal-Mart also buys from American companies, but the criteria Wal-Mart lays down for such purchases--such as telling these companies how much Wal-Mart will pay for a product before they will give it shelf space in their stores-- forces these companies to purchase from China in order to do business with Wal-Mart. In other words, if these companies want to stay in business, they have to have Wal-Marts business, so they have to buy from China to meet Wal-Marts low cost criteria.
Costco, K-Mart, Sears, etc. are not remotely in the same league with Wal-Mart, although they are doing their best to compete. I pick on Wal-Mart, as you put it, because they have established undesirable business practices that will eventually ruin American business as we know it. Their standard is rock-bottom prices, which in turn creates low pay, part-time work, few benefits, etc. for those who work there and could have an out-reach to other companies that do business with them. Dont be fooledthere are good reasons for all the backlash against Wal-Mart in America.
So Wal-Mart stores in China are kicking ass, are they? Havent the All-China Federation of Trade Unions launched a public relations campaign against Wal-Mart over Wal-Marts refusal to let Chinese workers unionize, and hasnt there been threats to sue Wal-Mart in the Chinese courts over their business practices? All this in spite of the fact that when Wal-Mart entered into an agreement with China to do business in that country, it was aware of Chinas Trade Union Law that states clearly that a union shall be set up in any enterprise with 25 or more workers. The Chinese Corporate Affairs Manager for Wal-Mart admits that wages paid by Wal-Mart to its Chinese employees provides basic existence for a single person, but not even a basic existence level for a family. Sound familiar? Could your family survive on an income of less than $20,000 a year in America, and far less than that in China? This is what youre supporting when you choose to buy from Wal-Mart. But, hey, its your choice!
Another reason I do not support Wal-Mart is because it supported China against a Tennessee company that brought suit against China before the International Trade Commission for dumping TV sets in the U.S. market. Dumping (selling a product for less than it costs to produce it) is illegal under international law. Chinas illegal business practices had almost forced this company out of business, but yet Wal-Mart saw fit to take Chinas side against an American company that was fighting for its life. Wal-Mart is not the supporter of "Made in the USA" that many people think it is. Luckily, the Tennessee company won its case and continues in business today.
Do some research on the internet about Wal-Mart and China and then come back and tell me if I am friggin high. I'll even provide the link for you about the Tennessee company's experience just to get you started. It's quite a long article, so you'll probably want to print it out to read it.
http://www.pbs.org/wgbh/pages/frontline/shows/walmart/interviews/hopson.html