Do you think it would harm the economy if Walmart stopped buying from overseas?
Answer:
Probably because of the various effects that this practice would have on different groups. Prices rise, sales fall, earnings fall, corporate office takes action. Probably in layoffs. This would lead to a sharp reduction in the multiplier effect. This is where every dollar earned is generally worth about $7 to the local economy (you get paid and then buy things and that store pays it's people etc... Walmart employs roughly 1.9 million people so a 5% reduction in workforce would result in some pretty serious ramifications. This would mean 95,000 people out of work assuming each person made 20K per year this would be $1,900,000,000 in lost wages (therefore lost spending) and a total loss of 1$13,300,000,000 including the multiplier effect on the various communities that have Walmart Stores. So I would say that it would lead to some harm.
yes i do b/c alot of ppl just cant afford to buy some of the products made right here in the us. It costs alot more to make them here it seems. Alot of these stores that sell all american made products are outrageously expensive or at least i know i cant afford them and no one i know can. thats why i shop at walmart alot its cheaper.
I don't think so. Most likely it's going to be the end of Walmart.
Walmart is a consequence of an economy already damaged.
They buy cheap crappy stuff overseas because there's no competition in the domestic market. Products that are not made or that are more expensive and don't compensate the difference in quality.
Let's say that a good car light bulb costs 20 and last a year and the crappy one costs 3 and last half a year. You save 14 by changing your light twice a year. Double the quality of the good one and you're still saving 8. Triple it and you're still saving 2. Quadruple it and you're loosing 4 by buying the crappy one. But you'll pay that over a long period of time.
The perception of the market is not always based on accurate measurement of the money.
Not really the economy. However, it would really hurt the standard of living of the middle and lower income people. The fact that Walmart does buy overseas drives down the market prices of the good they sell. Therefore even if someone in those income groups don't buy from Walmart they still benefit as the place they buy from must compete with lower prices by offering lower prices. If Walmart stopped their prices would increase and all prices would increase. This would be an indirect inflation and thereby people would be able to buy less goods with the same income.
no it would be good esp in the long run!
If Walmart stops purchasing overseas for non economic reasons, then yes, it will hurt the US economy. Trade theory and comparative advantage tells us this.
Walmart is the economy. What else do you have? Oh, there are also small shops out there that happen to ALSO sell chinese crap. Who would have thought so??
Whats the point of walmart stoping buying from china when the rest of the companies are also moving to china? What will they buy then?
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