Monday, December 3, 2007

Wal-Mart (Practice Final Exam)

In America, there is a surprising thing, which is that everyone can find a store everywhere. The huge store provides many kinds of products from city to country in America. It is Wal-Mart. Wal-Mart is really a huge company not only in America, but also in the world. However, there is an argument about new plan of Wal-Mart in a small country area, Carbondale. This huge company wants to build a new big Wal-Mart in the Carbondale-Murphysboro area. Some people say that it can help the small country to develop more and more with a big store. But, others say that the new supercenter will be harmful for a small country area and can destroy small businesses, because it is so huge that it can attract people (Jacobs, 2005).

Wal-Mart is huge company, so it can help the small country area’s community. So, the plan about building a new Wal-Mart in Carbondale should be accepted in public, because it makes the quality of people’s lives increase, it makes the small town be developed, and it causes competition in the markets.

First, the new supercenter will be helpful for increasing the quality of people’s lives, because it can provide many more jobs than now. Actually, Wal-Mart is so big that it has provided a lot of jobs. According to Hoenig (2004), “In 2005, Wal-Mart created 125,000 U.S jobs, and is continuously adding thousands each month” (para. 16). It can be more helpful for people who have low income than the rich. In addition, Wal-Mart provides low-price products, so many people who do not have high income can buy whatever they want in Wal-Mart (Locke, 2004). So, there will be a lot of jobs and low price products at Wal-Mart in Carbondale.

Second, Wal-Mart encourages the community of small country in development. With building the supercenter, there will be other new stores, because the new building shows the possibility of development of town. Because there is any possibility for development, the Wal-Mart wants to build the new center, then owners of other companies will try to build their company, also. Finally, it will be connected to growing the small town’s economy.

Third, the new supercenter can make any competition in the market. In fact, building a new supercenter is so threatening to other stores. So, the other companies should make good and low price products if they want to survive in the market. Not only do other companies make good products, but also Wal-Mart has to provide high quality product for making profit. So, all companies can be interacted, then people can get better goods from them.

According to Randy Auxier, “Murphysboro should not be foolish enough to believe that the right way to fix its financial problems is sales tax revenue from Wal-Mart” (as cited in Jacobs, 2005). However, it is not true, because the tax from Wal-Mart is actually helpful for government. In Hoenig’s article, “The truth is that all Wal-Mart does is provide low prices, serve communities with long hours, employ thousands of people and pay millions of taxes – over $ 61 million in the state of Illinois alone” (2004, para. 17). As you can see, the tax from Wal-Mart is about $ 61 million. It can be helpful for the state where the new supercenter will be built.

In conclusion, the Wal-Mart is so helpful that the new plan to build a new center in the Carbondale-Murphysboro area should be accepted for people’s living quality, town’s development, and good products. It will be helpful for people and government.

Reference

Hoenig, J. (2004, February). Welcome Wal-Mart. Capitalism Magazine. Retrieved on November 29, 2007, from http://www.capmag.com/article.asp?ID=4561

Jacobs, N. (2005, April). Local opposition to future Wal-Mart Supercenter in Murphysboro. Daily Egyptian. Retrieved on November 29, 2007, from http://newshound.de.siu.edu/spring05/stories/storyReader$858

Locke, E. (2004, February). Three Cheers for Wal-Mart. Capitalism Magazine. Retrieved on November 29, 2007, from http://www.capmag.com/article.asp?ID=3534

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