In the US, we know Walmart for its Supercenters and Sam’s Clubs. In Mexico, not only can you find these big box stores but also Walmart banks, restaurants, grocery stores and mini marts.
Like in the US, these Walmart stores earn market share because they are big enough to set the price of production. They are not one actor amongst many following the direction of the invisible hand. Rather as they drive out smaller businesses they become the invisible hand and wages, for example, are set arbitrarily low rather than by market forces. Up until 2008, many employees were even paid in store credit, similar to the coal miners in early 20th century West Virginia. Thankfully, the Mexican Supreme Court declared this practice unconstitutional a year and a half ago.
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