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Originally Posted by RH77
May I bring the topic back to the origin:
Food prices are Increasing for the World's poor.
To respond to the ancillary discussion:
I have inside info that Wal-Mart intentionally will contract with suppliers (sometimes domestic), take a huge share of their sales, and insist on cheaper prices: only to put them out of business and buy the whole works at a discount. Fully planned and executed. Ethical? No. Business? Yes.
It happens as the supplier cannot handle the lower prices and attempts to negotiate. WM says "See-Ya" and the supplier lost 90+% of their sales. Bankruptcy ensues and jobs go overseas while WM buys the "Name".
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Lower prices are not the issue, per se - sales are. If they have the lowest price for the identical item, they will get the sales. In other words, they would be foolish to sell for less than it costs to make an item, so the real competition is with other companies who make the same thing. They can't be put out of business otherwise, unless Walmart and their existing customers simply refuse to sell the item, no matter who it is sold by. As for negotiating lower prices, every chain does that. EVERY single one!
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Personally, I don't agree with it. It's a poor business practice and represents a biased business model. Remember the anti-trust laws from History class?
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It doesn't apply.
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I support workers' rights -- anywhere, but it's good to see jobs stay in the U.S. and Canada. Our manufacturing base has dwindled to a blip on the radar in the World market. The advantage to the weakening Dollar is more jobs filtering in.
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Interesting that in a thread about the poor in other countries not being able to afford food that someone would promote protectionism for the sake of workers' rights. Only the employed are workers, and only competition will keep that ball rolling. History has shown this time and again. No exceptions,
worldwide.