Wal-Mart Revisited
Foreign Policy argues that it is more of the latter than the former. Wal-Mart is very selective of the country's it chooses. Without a middle class, people who have money to spend but it is scarce enough that value truly matters, a country easily removes itself from the selection process. Wal-Mart wisely selects places that has a very large middle class, which helps to guarantee the country's future profits.
According to the World Bank, the number of the middle class in the devolving world should increase from should increase from 56 percent in 2000 to 93 percent in 2030. Next on the Wal-Mart radar screen are Russia and the countries of Eastern Europe, according to Foreign Policy.
- Brazil has 352 stores and went from an average annual GDP of 1.3% before Wal-Mart to 3.8 percent on average between 2003 through 2007 after the store entered the scene.
- Japan has 371 stores and went from an average annual GDP of 0.5% before Wal-Mart to 2.1 percent on average between 2003 through 2007 after the store entered the scene.
- Even Mexico has enjoyed the Wal-Mart years with 1,242 stores and went from an average annual GDP of 1.7% before Wal-Mart to 3.3 percent on average between 2003 through 2007 after the store entered the scene.
It appears that those who hat Wal-Mart and despise its arrival to their country will likely find themselves crying all the way to the bank. Maybe countries would serve themselves well by developing policies that mirror Wal-Mart's criteria for expansion.
Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.
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