International economics is basically related to the various economic transactions and interactions among states globally, which is based on trade, investment and production among the very countries of the world. (Thompson, December 30, 2000) However, international economics is the contemporary trend of international relations, which is known as globalization. With the end of the cold war between USA and Former USSR, Globalization emerged as the new trend of international relations. Where globalization means free market economy, free trade and trade liberalization, privatization, national, regional and international economic integration as well as revolution of information technology. So economic development is the priority of states in today’s world. Many states have developed their economies due to regional and international economic integration. (World Bank and Oxford University Press, 2002) The developed countries of the world or strong business countries use the resources of the developing countries, they introduce their MNCs and this way both benefit from each other. For instance, China, India and many countries grew rapidly this way and also globalization helped reducing their poverty. (Rodrik, 1999) However, this positive aspect of globalization was 20 years back. Today globalization is a blessing only for the developed countries as states having equal economic states benefit equally from each other while when these higher economic status countries do trade with the developing countries, the developed countries benefit most out of it. This is due to the reason that developed countries use the very resources, manpower and skills of the developing countries and mobilize them according to their own requirements and then export them into big markets over all the world. So they earn a healthy percentage of profit out of them. (World Bank, 1997) Therefore, international economics revolves is based on the contemporary trend of international political economy known as globalization.

Wal-Mart

Wal-Mart is the biggest chain of retailer and consumer, which provides a large number of quality products under one roof. These include grocery clothing, pharmacy, toys, hardware and various CDs, DVD Musical instruments, consumer electronics, books etc. etc. Moreover, every Wal-Mart possesses McDonalds where people can eat and have a break while shopping. It also contains a photo shop so people can do shopping while their photos get ready.

Wal-Mart is basically an innovative creation of Sam Walton who opened the first Wal-Mart store during 1962. It is publicly traded under the New York stock exchange and recognize by the symbol WMT. The secret of the international economic aspect of Wal-Mart is hidden in the number of shareholders associated to it, which are from many economically developed countries of the globe. These shareholders till the end of this year are estimated to be around 333,604 as a common stock of Wal-Mart.? So Wal-Mart basically works in economic collaboration with other states where consumers get a large range of discounted products that include mostly stocks and a small percentage of premium products.

Another interesting aspect of Wal-Mart is the SAM’S Club, which requires a membership and provides products on further discounts. This is basically a warehouse club owned by Wal-Mart. Moreover, it also operates via various super-centers that include a variety of grocery markets. ? Not only a large variety of products under one roof with discounted price is the source of attraction of Wal-Mart but also its customer services attract the people. There customer service also includes exchange of their products even if a customer comes back after a month. The key to any successful business is meeting the demand of the very customers, maintaining the quality of products and a reasonable prize along other satisfactory demands of the valuable customers. All these together are a part of Wal-Mart. At the same time the new concept introduced by Wal-Mart, which is getting all kinds of consumer products under one roof is what attracts the customers the most.

However its customer care services includes experienced and active employees who are usually people of old age who perform the primary responsibility to welcome the valuable customers at the store. These are known as Greeter. At the same time Wal-Mart maintains a family environment with these employees by developing essential family feelings among them under their training video program “Picked a Great Place to Work”. This promotes a family feeling among the employees and their bosses, which develops a feeling of working as associates with their superior servant leaders. (Ehrenreich pp. 143-4, 2004)
Wal-Mart and International Economic
Since international economics is based on the theory of globalization and regional as well as economic integration, Wal-Mart plays a very significant role in this process all over the world. The growing success of Wal-Mart with in America has immensely influenced all the economically developing countries to allow an outlet of Wal-Mart with in their country. This further ensures the economic development of every member country resulting in tremendous economic gains to America itself. So this way at the same time, regional, national as well as international economics is strengthening due to international and regional economic integration under the umbrella of Wal-Marts. Moreover, traditional hostile states are also developing a healthy social and cultural exchange environment via being a part of this international economic chain. On the other hand as globalization has merits and demerits, Wal-Mart is also being criticize due to some of its internal policies for instance it lacks a trade union which is the most important aspect to raise the voices and solve the various problems and issues of its labors. Nonetheless this opens room for the local retailers to criticize Wal-Mart as they feel misfit in the local economic market. So at one side Wal-Mart is bridging the economic gap internationally and introducing new trends in international economics, on the other side, it is increasing the gap among the local markets of not only in America but also in the other parts of the globe.

The success and economic importance of Wal-Mart lies in the belief system of Wal-Mart and its association that they promote at work place. These beliefs are basically the hidden revolutionary philosophies, which include excellence at the work place, ensuring a healthy customer service, adopting a strategy where by the companies can earn maximum profits and minimum loss at the same time providing the consumers products at low price. Therefore, in order to achieve the above objectives, Wal-Mart association works with the philosophy to respect every individual as every individual deserves to be treated with due respect and dignity, to satisfy the demands of the customers by adopting a low price strategy so that people belonging to every economic class can walk into Wal-Mart and shop for their necessities of life. The third aspect that enhances the importance of Wal-Mart is their strategy striving for excellence by developing new and innovative ideas to constantly improve the boundaries of Wal-Mart. (Soderquist, Don and Coughlin, Tom and Scott, Lee.

On the other hand the importance of Wal-Mart as an international economic source is the acceptance of various cultures of the world that has adopted Wal-Mart strategy while being associated to it as strong retailers and consumers. Presently Argentina, Brazil, Canada, China, Germany, Japan, Korea, Mexico, Puerto Rico and United Kingdom are associated with WMT. Therefore, starting expanding all through North America, Latin America, Asia and Europe. Wal-Mart is winning bigger markets from all over the globe. Consequently, Wal-Mart produces a handsome financial gain via developing and expanding its stores all over the world to the international economy. According to Wal-Mart International, during 1004 fiscal year the retailing reached to $ 2.3 billion with an increase of 16.6% from the previous year. At the same time the profits increased to $ 2.3 billion with an increase of 18.6% over last year. (Wal-Mart.Com accessed on 11-06-04)

Another aspect that marks Wal-Mart an international economic source is the economic integration of various cultures of the world under one chain of retailers and consumers. Though every member state possesses a distinctive cultural background, language, at the same time the demand of these various nations are different from each other. But the focus on a well-organized global strategy of Wal-Mart has resulted in a significant growth with a greater potential to develop globally. Basically the division of Wal-Mart in various parts of the globe is strategizing according to the customer needs, merchandise preferences as well as the local suppliers of that very country associated to Wal-Mart. So all together this makes it possible for these divers cultured countries to enjoy the benefits of low price with quality and a wide variety of products under one roof.

However, with the tremendous success and significant growth of Wal-Mart as an important source of international economics, much criticism is also heard regarding the impact of Wal-Mart to the local market of America. This is due to the locally owned stores produced by Wal-Mart, which snatches the market opportunities of these local retailers, as people prefer shopping all their needs under one single roof. Therefore, the community stores are losing economic potential with in America. Nonetheless the internal policies of Wal-Mart towards its employees and strategies is very cruel and do not follow any legality. There are no labor unions that can address the very issues of the workers to the higher authorities of Wal-Mart; consequently there is a wide gap among the higher authorities and the workers, as the employees in the middle misuse their powers. For instance if employees demand an increase in their wages, instead of negotiating the matter, the second higher post employees of Wal-Mart mistreats or expels the employee by some false and legal allegation. (Palast -- pp. 121) Moreover, the behavior of forcing employees to work off the track with out any extra pay is also a reason that the very employees are aggressive to the internal policies of Wal-Mart towards its employees.

However, another criticism against Wal-Mart is the very slogan, which America is spreading implicitly via opening its chains in various parts of the globe is “ Made in America.” Though the very products retailed and consumed in these large chains of Wal-Mart are a combination of imports and exports from all over the globe as America uses the raw material and resources of the developing countries and apply its technological stamps to polish the product and sells them via its chain of Wal-Mart. Not only this, the other members of Wal-Mart are also very big retailers to the products soled in Wal-Mart, which many people are not aware of. People purchase a lot of stuff as an influence of the name of this chain of business “Wal-Mart” and believe that all the products are made in America. However, America being aware of this fact gives a deaf year as this helps the original products of America to sell in a more easy way. Though there are much other debates criticizing Wal-Mart but all are related to the local economic source, which indirectly affects the international economic aspect of America due to Wal-Mart. Nonetheless there is not much reality in these debates except the issues related to the internal policies of Wal-Mart as the success and failure of the local markets with in America are related to the very policies and working of these local markets themselves.
On the other hand, many sources also believe that Wal-Mart is also involved in local politics, which is blocking the development of the local stores. Many local retailers have also taken this matter to courts as they feel Wal-Mart is a major obstacle in expanding the local market in America. However, this is another issue raised against Wal-Mart, which does not need to be given much attention, as it is a known fact that Wal-Mart is not only a immense source to increase America’s economy but also effecting the international market overwhelmingly.

Conclusion

Globalization has not only marked a change in the traditional trends of international relations with an increase in international political economy. It has also forced the world to be fast and spontaneous to achieve an easy and luxurious life style while saving time and money. Wal-Mart is a live world wide spreading example. Side by side the internet revolution has also made it easy for local as well as international consumers to purchase a large variety of products just sitting at home connecting to a dial up and ordering via credit cards. So with the introduction of a chain of stores that provides every human need, under one single roof with a low price rate. This has also forced the economically developed as well as developing countries to integrate economically benefiting each other while keeping the national interest of their own states. At the same time, Wal-Mart is tremendously improving the international economy of this global village.