| | | Wal-Mart Effect The economic impact felt by local businesses when a large firm such as Wal-Mart opens a location in the area. The Wal-Mart effect usually manifests itself by forcing smaller retail firms out of business and reducing wages for competitors' employees. Many local businesses oppose the introduction of Wal-Marts into their territories for this reason. Breaking It Down: The Wal-Mart effect is not all bad; it can also curb inflation and help to keep employee productivity at...
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