In the United States and all over the world, the entry and operations of big retailers like Wal-Mart into a small town sparks great controversy within the community. The fact that people contemplate on the fact that the policies and actions of Wal-Mart are destructive to a small town’s economy is not new. Most small town’s economies are run by subsistence and self-reliant traders. With time, the traders embrace the division of labor and specialization of skills in accordance with the trade, production and manufacturing needs of the community. In such a market, a simple move like a decision by the producers to sell directly to the consumers may spark considerate outcry from the middlemen and other traders. Therefore, specialized vendors in such markets are value since they tend to expand markets and cut costs for the producers and the craftsmen. In the history of retail businesses, the innovation and the way of operation of the middlemen helped reduce cost and time on part of the consumers and hence, these form the backbone of the economy in small and growing economies. Wal-Mart is one of the big retail stores whose rise and operation have been applauded and criticized in equal measure. This paper in an unbiased way investigates the activities and the policies of Wal-Mart that are presumed to be damaging to small and growing economies.
Background of Wal-Mart
Wal-Mart operates within the United States and in other major cities in the word, and has grown to be a popular retail store in the world. The retail giant started operations in 1962 and was founded by Sam Walton. Current, Wal-Mart is the fastest growing and the biggest ...
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...equently, the families of the workers suffer, and ultimately the economy of the area is affected (Chen, 2015).
The entry of Wal-Mart into a new town sees the company bring its policies and actions that in the long run are detrimental to a small town 's economy. The company’s policy to offer lowest prices on the market comes with lots of sacrifices by the workers, suppliers and local business since the ultimately low prices throw the local economy into turmoil. The company pays low wages to its workers, denies them access to quality healthcare plans, and embraces policies that ensure the workers do not join any unions that may help fight for their rights. This way, the workers suffer economically and in the long run, the entire economy of the new town is on the receiving end due to the entrance of the retail giant into the small town 's economy.
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