Wal-Mart: Business Impact of Political & Legal Environment - Essay Sample

Published: 2023-09-16
Wal-Mart: Business Impact of Political & Legal Environment - Essay Sample
Type of paper:  Essay
Categories:  Business Walmart
Pages: 3
Wordcount: 771 words
7 min read


Wal-Mart is an international corporation that conducts its activities through a chain of hypermarkets, subdivision stores and grocery stores, and retail operations. The company's nerve center is at Bentonville, Arkansas, United States. The company's operations get determined by the political, legal environment in the countries it exists. These environments include the company's relationship with the government on legal matters. Government regulations affect how the business conducts its business and the revenue it receives. The document assesses the political, legal environment in the United States and Canada.

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Wal-Mart Political Legal Structures

Political, legal forces are relevant for a brand like Wal-Mart that operates globally. Different political structures characterize the international business environment. In the United States, the following structures influence the operations of Wal-Mart ("Walmart.org," 2020). In the United States, the president is mutually the head of the administration and the state. The laws created by the US government affect the retail industry in many ways, the structures created to include.


The retail industry pays the most substantial corporate tax in the United States. Wal-Mart company and other retail companies do not have glaring tax loopholes and lobbying interests. At the state level, Wal-Mart does not get charged with state sales taxes because it is an internet-based retail business. The company receives advantaged through this program.

Federal Trade Commission

At the federal level, the United States has created laws to protect both the workers and the consumers. The state encourages truth in advertising. The state dictates the message that Wal-Mart should express when trying to persuade customers to buy goods and other amenities. The company is not allowed to violate the laws since they would incur severe penalties. The federal trade commission enforces advertisement laws at the federal level ("Global Ethics & Compliance Program Report," 2020). The legal structure seeks to help customers to seek punitive damages when the business offends them through advertisement or its operations. Consumer protection laws aim to make Wal-Mart avoid any marketing campaigns that aim to increase their sales by misleading the customers. The laws dictate that it is illegal for the company to make clients trust there is a deduction on charges while it does not exist.

At the global level, Wal-Mart gets affected by the laws created by the states in which it operates. In Canada, retail businesses get affected by employment laws and legislation. The laws in Canada revolve around the wages, store hours, and the benefits employees gain by working in the company ("Retail Labor & Employment Advocacy | Retail Council of Canada," 2020). Canada's retail council works with Wal-Mart human resources to make sure they create retail-friendly policies. The Canadian government creates policies that ensure the global companies do not affect their local businesses. The policies created for taxation and importation of goods and services are balanced to attract foreign investment and protect local businesses.

Impact of Domestic and Global Political Legal Environments on Wal-Mart

The Domestic political environment allows Wal-Mart to conduct its activities ethically. The taxes help the company to collaborate with the United States government to influence its GDP. The state governments encourage the operations of Wal-Mart by removing tax charges on its business-based operations. On the other hand, the government protects the business by providing security for its business, primarily through the finances (Marcilla, 2014). The United States government cannot allow Wal-Mart to become bankrupt. The Federal Retail Commission allows the company to create a sustainable relationship with customers through ethical practices in advertising and marketing. Governments create a favorable environment for businesses to prosper in the environment through favorable policies in global business. Wal-Mart effectively conducts its activities in foreign lands through government security. The company can offer products and services by employing local individuals according to the employment laws.


In conclusion, the political, legal environment created by the countries influence hoe Wal-Mart conducts its activities and influences. A favorable environment enables the company to operate under the government's protection through support in policies that reduce tax charges. Wal-Mart collaborates with the global political environment to comply with its laws and to receive support in its government operations.


Global Ethics & Compliance Program Report. (2020). Retrieved 25 June 2020, from https://corporate.walmart.com/global-responsibility/global-compliance-program-report-on-fiscal-year-2016

Marcilla, L. (2014). Business analysis for Wal-Mart, a grocery retail chain, and improvement proposals. Southeast Missouri State University and Universitat Politècnica de València. https://riunet.upv.es/bitstream/handle/10251/44289/Business%20analysis%20for%20Walmart%20FINAL%20TFC%20Laura%20Barber%C3%A1%20Marcilla.pdf?sequence=1

Retail Labor & Employment Advocacy | Retail Council of Canada. (2020). Retrieved 25 June 2020, from https://www.retailcouncil.org/advocacy/labour/

Walmart.org. (2020). Retrieved 25 June 2020, from http://giving.walmart.com/foundation

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