Does Toyota, and Wal Marts expansion relect efficient production, and marginal propensity 2 consume?
My teacher wants us to give a short answer to this but i couldnt find anything online?
Answer:
It doesn't reflect a high marginal propensity to consume because marginal propensity to consume is an economy wide concept it doesn't reflect an attitude towards a specific company but towards the entire economy. The expansion of these two companies reflects efficient production together with the establishment of a brand name so not only are the companies efficient but very broadly advertised.
Walmart doesn't produce -- it sells. And I have no idea what marginal propensity to consume means, but Toyota makes good cars and the US is a huge market. The same for Walmart--large market, lots of consumers, cheap prices. Great place for expansion. Then add in the cahcet of being an American company. There are Starbucks in China, too.
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