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
RE:flaw in this explanation
by Sagar on Nov 15, 2005 09:07 AM Permalink
But do you think , indiviuals working as independent enterprenaurs would be able to make advancements in the quality of products and services offered to the consumers. I dont think so capital is much more important in retailing , than labour. as you have suggested labour would automatically adjust itself. Why cry about FDI in retail , when our very own Pantaloons and Big Bazaars are eating away the share of these small shops.FDI would bring more efficiency in organised retailing. (Figures reveal much more than mere numbers) There is more to it, these small shops , often family owned businesses would learn from this experience , although they cannot fight the price wars but they can be innovative by way of offering wide range of services.Thats what you and I need ..innovation. Think abt it
