Economic Impact of Wal-Mart Via Two Studies Essay Example

of the Consumer Price Index to help understand how the economy as a whole functions.

Global’s study ascertained that when measured against the Consumer Price Index, a 3. 1% decline in overall consumer prices was determined. This index is a mathematical gauge created to compare how the prices of some types of merchandise and services, when grouped together, differ between time periods or geographical locations. Additionally, Global Insight took other factors into consideration that restricted consumer price inflation to widen the economic scope of its findings.

The company explored Wal-Mart’s modern logistical and distribution methods, which found to increase total factor productivity lowering the chain’s overall cost structure. This enables Wal-Mart to provide its goods to consumers at lower prices than other stores. Another way the retail chain passes on savings to consumers is by enjoying discounts from its suppliers. The chain’s integrated purchasing system and large buying power positions it in an attractive way to suppliers by making their processes easy to use and more efficient.