How is Walmart effecting our economy Essay Example | Topics and Well Written Essays - 500 words

How is Walmart effecting our economy - Essay Example Additionally, Wal-Mart has a tendency of providing a wide range of products for its consumers especially in the rural areas according to Hicks (2007). This is especially true of supercenters which sell products ranging from garments, cuisine, and hardware to optical services. The lower prices and the high accessibility to products in one area offers direct benefits to local consumers economically. The magnitude of the benefits varies with different regions depending on how the prices are low, and the distance the consumers have to travel in order to access the wide array of goods. The fact that Wal-Mart can trade its products at cheaper prices than other retailers provides an intense risk to the feasibility of other retailers near them. In most cases, the newly established retailers are forced to close or downsize their business when Wal-Mart opens a new branch in that region. This is because the number of their customers tends to decline as they shift to Wal-Mart. Other businesses providing products and services not offered by Wal-Mart tend to benefit due to the proximity with Wal-Mart which attracts many customers as suggested by Anderson (2011). These include businesses providing home furnishings and some foodstuff. Nevertheless, despite the positive effect, Wal-Mart as a whole has depressing impact on the operation of other local retail outlets. A typical Wal-Mart store employs around150 to 350 workers while a supercenter employs around500 employees. However, most of these workers are employed on part time basis. In evaluating the overall effects of Wal-Mart, the new jobs need to be balanced against jobs lost by the competing businesses. Moreover, with Wal-Mart’s extremely centralized supply-chain management, wholesalers and distributors at the local level are likely to experience breakdown on the demand of their services according to Renkow (2005). A good example of the general adjustments arising in the local job market as a