The impact that huge multinational retailers have had on small and medium businesses is a regular topic of discussion when it comes to the consequences of globalisation as it is seen in a growing number of places all over the world. The main reason for such a high focus is because small businesses make significant contributions to the economy of developed nations as well as helping with the reduction of poverty in developing nations (Asiedu & Freeman 2006, p. 2).
Australia has its fair share of large retail franchises (Harvey Norman, David Jones, Bunnings, JB Hi-Fi, Kmart etc) but it is really nothing compared to America. The US has 48 different department and discount store franchises (so many that the US required a separate link on Wiki). <http://en.wikipedia.org/wiki/List_of_department_stores_of_the_United_States>
References.
Asiedu, E & Freeman, J 2006, ‘The Effect of Globalisation on the performance of small and medium enterprises in the US’, vol. 5, no. 23, p. 1-22, retrieved 1 August, <http://www.aeaweb.org/annual_mtg_papers/2007/0106_1015_2101.pdf>
I think you’ve provided a very interesting, and very rarely discussed point of view here. Focus on globalisation and businesses is often on the bad points-people saying that they have too much influence and are too powerful-but you’ve raised a good point in the positive effects that they have for economies and employment. Great use of the video too :)
ReplyDeleteThis is indeed a very interesting discussion. Although I am not too certain about the child labor bits but I strongly agree, that major retailer is taking over the business. Big retailer like this often has a strong financial back up. They can afford to hire the best people to help them source the cheapest product from other country where the price of goods/product is cheaper. They can also hire the best public relation or sales person to make their advertising and shop display look best.
ReplyDeleteThis happen in Australia too. For example, the milk price in Coles. There is an open case between the farmers and Coles due how Coles price their milk. The local farmers state that Coles is forcing them to go out of business because they just cannot afford to beat the milk price in Coles.
Without doubt, smaller retailer will slowly be taking over by big retailer. This is sad but true.
Yes, I agree with you! It is our choice of preference that make large retailers even bigger. Large retailers have very big impact in the community, so big that even the media uses it as a discussion point. The video you post is very funny! But it does show the issue that small retailers face.
ReplyDeleteI’m from Hong Kong and this is not such a big issue there. People like to shop locally, they like to go to the small retailers they know. It is true that most of the land is taken by big department store, but sometimes my family and I like to shop on the streets.
I liked your post Lloyd. I feel it was somewhat brave of you to express some of those opinions; however, in general I agree major brands play an important role in our communities. The economy benefits by providing large-scale employment; which in turn provides customers for these businesses, as well as taxation dollars for government. I would have liked a reference for your comment that sweatshops generally pay more than the national average income of that nation, because I am not sure how accurate that is. Overall an interesting post, well done.
ReplyDeleteIn terms of looking at the effects of globalisation, I think the topic of major retailers and their effects is really interesting. In theory I agree with you that a lot of good comes from the economic growth/efficiency and lower cost of living that comes from major retailers like Walmart. However, your post ignores the genuine and warranted criticisms that are levelled at such organisations. You’ve tended to simply gloss over how major retailers have created an oligopoly on markets (particularly in Australia, by lowering competition with price fixing), have a lack of diversity in products compared to specialized small business, and simply shrug at the sweatshop issue.
ReplyDeleteThe moral low road is always more difficult to argue for. But i tried.
DeleteI really like the honesty of your opinion. You've raised some good and interesting points to consider about the positive influence of large corporations. I think its important however, to remember that these major companies should be responsible and held accountable for their actions and although something like a 'sweatshop' may be providing employment for those that would otherwise not have the opportunity, multinational companies still have a responsibility to act appropriately. well done
ReplyDeleteThe video is a good example that backs up your argument that large retail companies provide employment to those who need it but it conditions that could be considered appalling. Customers these days like to pay less and these companies provide cheaper products, the video proves that because the character only paid $5 for his violin and we know that if he went to a small business, who would be paying a lot more. In terms of globalisation, we see nowadays more companies are opening large retail stores in order to compete with profit with other large companies but sacrificing the welfare of its employers. I like it!!
ReplyDeleteStraight and too the point, which is sometimes hard to do. I like your rather fresh perspective that doesnt conform to the 'politically correct' answer about big business and the taboo topic of child labour. The vid works well, like your partner in crime, to get your point across. I get the vibe that you are looking at the idea of'Big Business' from a global perspective - the vast amount of job opportunity.
ReplyDeleteGood stuff Lloyd, I think it was brave that you expressed these opinions, especially challenging a South Park parody. Daring Stuff.Ultimately I think that in Aus, Coles and woolies got too much power. But I dig your argument. Its true, these superchains provide us with a brilliant service, made extremely accessible and a lot of jobs. The death of the corner shop is no great loss to me, and things are cheaper. Your blog is pretty sexy, well written and the video was relevant. Keep it up.
ReplyDeleteI agree with you view on big businesses. Big corporations can be good for the economy and they provide competition, sometimes on a global scale. I like that you have taken a different view on the impact globalisation can have on the financial sector. I think there too much focus on the stock market and how global events can affect stock prices. We are never going to get rid of these big corporations so we may as well make use of the positives they bring to the table.
ReplyDelete