Wal-Mart The High Cost of Low Price

Wal-Mart The High Cost of Low Price Wal-Mart The High Cost of Low Price

When we as consumers buy cheap goods , we do not think of the high price that the community is paying for these cheap goods . We only the cover of the book but do not dwell further to see what is underneath the cover From the top these stores seem a blessing , but are they really a blessing or will they turn out to be a distress in the long run

Wal-Mart being a big retailer can pressurize its suppliers

to supply them with cheaper goods . Wal-Mart is the world 's largest company , as Charles Fishman stated in his article . Thus it has the ability to do that , suppliers supply huge quantities of their goods to the company Wal-Mart entails huge discounts and reduced prices from its suppliers almost everyday , it gets to make use of economies of scale . The result of these low prices is that companies operating in the US have had to shut down their American factories and start outsourcing work to third world countries where labor is cheap . Many jobs are lost as a result The downside of this is that the demand for goods overall falls as employees loose their jobs they have less money to spend and save

Wal-Mart employees 1 .6 million people worldwide . This is a large number of people . The employees do not earn much and getting an increase is rare . Although wage rates are higher at Wal-Mart...