Wal-Mart Invades, and Mexico Gladly Surrenders

Wal-Mart, the largest corporation in America, has revenues that exceed the economies of all but 30 of the world's nations. It dominates about 30% of the grocery business in the US, as well as substantial proportions of other industries. Now, its domestic success is being duplicated in Mexico. Wal-Mart employs 100,164 Mexican workers, making it the biggest private employer in the nation. Mexicans have begun to look to Walmart for the same reasons as Americans: low prices, large varieties, and friendly service. However, concern about the expansion of this foreign firm is growing. The potential effects on wages are of particular concern, as Wal-Mart’s US employees are paid about $10 less an hour than unionized grocery workers at other stores. Wal-Mart claims the good working conditions it provides in Mexico have eliminated the demand for unionization, but workers are only paid $1.50 an hour. Meanwhile, many fear that local businesses will lose customers to a corporation whose profits remain in the US. – YaleGlobal