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flaw in this explanation
by Karuna on Jul 22, 2005 07:30 PM

Most cite lowering costs and savings to customers as benefits for allowing retail trade.but thatz only in the short term. through retail trade, when costs are lowered for a longer period of time, then eventually salaries get adjusted to those lowered rates and that benefit is lost in the long term. so lowered costs doesn't make any sense.
coming to employment benefits, yeah definetly it will provide cheap employment to thousands at the cost of few guys njoying billions and roaming around in private jets. all the small shop owners will start working in retail shops for 12 hours a day under cheap labour but the executives will be builing mansions. that is what is happening in wal-mart in USA. inside wal-mart, thousands work for 7$ an hour and hardly make enough in a month to make good living. think if wal-mart wasn't there, hundreds working there probably will have their own shop and be an entreprenaur.
problems that come from retail far outweigh the benefits in the long term. also politically big corporations will have enormous power which will leave very little power for the common man.
any one interested can contact and initiate debate.
my email is kprindia@yahoo.com thank

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Why FDI in retail is good news