Econ 333 Question 2 - 2. Discuss Wal-mart's role in the...

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2. Discuss Wal-mart’s role in the growing bilateral trade deficit that the U.S. has with China. Do Wal-mart’s business practices contribute to this deficit? Is a trade deficit bad for the U.S.? Use concepts discussed in class (especially in Ch. 12 about trade deficits) to support your answer. According to the film that we watching in class Wal-mart is contributing to the growing rate of trade deficit in the United States. Wal-mart imports primarily within China, and other foreign countries. Wal-mart has products produced in foreign countries and when sold in the United States for much greater profits. Wal-mart is outsourcing American jobs forcing United States companies to produce cheaper goods or produce the goods with foreign nations that supply large amounts of low, unskilled labor to produce the goods; hence they will be able to keep completing with other companies within the United i8uStates. Wal-marts business practices definitely contribute to the trade deficit in the United States.
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This note was uploaded on 08/25/2009 for the course ECON 333 taught by Professor Yavas,cemilepan,lu during the Fall '06 term at Pennsylvania State University, University Park.

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Econ 333 Question 2 - 2. Discuss Wal-mart's role in the...

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