Walmart

a. The passage I found to be most interesting was the passage about the negative connotations that arose about Walmart. It was being criticized by the popular TV show South Park, facing huge class action lawsuits for discriminating against women, followed by a huge illegal immigrant worker raid. I had heard of some of these negative actions such as the illegal workers it had hired, and apparently so did the 8% of the customer base Walmart had reportedly lost. The company went spiraling down hill after all this had happened because the consumer base lost respect and trust for the company. I personally continued to and still do shop at Walmart, I see the negative of Walmart as an externality of the company that does not effect me, Walmart chooses to sell products at lower prices and the opportunity cost for me to shop elsewhere for a higher price is not low enough for me to turn away from shopping at Walmart when needed.

b. The use of fresh organic produce illustrates the interaction between the firm, economics, and culture. In todays world, organic produce is gaining widespread popularity. When firms put forward produce that is destroyed or not up to proper standards (assessed by consumer) the consumers will not have any interest in the product, lowering the economic supply and demand curve, due to the culture of wanting fresh produce. When firms such as Walmart buy from local organic farms, they have the ability to put forward a product that is in demand by the consumer base, shifting the supply/demand curve in a positive direction as well as increasing profit.

c. Multinational firms have a big impact on Spain. Spain is currently going through an obvious downhill financial spiral, and the country as a whole is hoping multinational firms will grow in the country to help increase the GDP, eventually aiding the country out of the financial bankruptcy it faces.