Large Corporations

Topics: Business, Local government, Small business Pages: 4 (1278 words) Published: February 25, 2013
JANUARY 7, 2013

Large corporations such as Wal-Mart or Home Depot often come under criticism for putting mom-and-pop shops out of business. While this may be a valid criticism, the consumers neglect to realize that they play the biggest part in shutting these businesses down. Consumers across the country are always looking for the best deals or the lowest prices, and in most cases the larger corporations are where products can be found at the lowest price. Many small business owners and the populations of small towns dislike large corporations moving into the area because they believe it negatively effects the local economy. In reality, we should embrace large corporations moving into our communities because they boost the local economy, they lower prices on products we use every day, and they create hundreds of jobs.

Some believe that large corporations harm the local economy. While this is true in some cases, studies have shown that placing a Wal-Mart in an area actually increased sales for businesses in or around the area. In a study conducted in 2002 by Jim Simmons, a retired University of Toronto geography professor, the professor states: “We tried to see if there was a substantial sales decline in the nearby areas, but it was difficult to find,” said Mr. Simmons. “We couldn't find any situation where people lost sales or went out of business.” (Shaw, H. 2002). This is just one of the many findings from the study. In an effort to further boost the local economies of the areas new Wal-marts are opened in, Wal-Mart has implemented a Locally Grown program that has been enacted since 2008. Pam Kohn, who is a senior vice president and general grocery merchandise manager, had this to say about the program. "At Walmart we are committed to increasing our locally grown offerings and the number of local small farms we work with. Through this...

Cited: Shaw, H. (2002). Wal-mart boosts local economies:
Study: Finding shows retail behemoth benefits neighbouring stores
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Sailee, Kale (2011) How Does Walmart Keep Its Prices So Low?
Renkow, M. (2005). N.C. State Economist. Department of Agriculture and Resource Economics.
retrieved from:
Basker, Emek, (2005) Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion
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