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Sunday, January 19, 2014

Weekly Investment Term #3



It's Sunday again....I'm excited to learn another new term here...and this will be something familiar to the people staying at the States.

The Wal-Mart effect...
Heard of the Wal-Mart effect?
If you have not heard of it, buy the book...there is actually a book on Wal-Mart effect by Charles Fishman. 

Anyway, in this post, I will give you a brief understanding of what the Wal-Mart effect is...it is the economical impact felt by local businesses when a large firm such as Wal-Mart opens in the area. The effect can be seen as it forces the smaller firms to run out of business or the reduction in wages for competitors' employees. 

These are the main reasons why local stores are against the introduction of Wal-Marts into their areas. However, there are some positives from these effects...as Wal-Mart effect helps to curb inflation and keep productivity at an optimum level. 


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