The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
Free trade regime – what is advocated by the developed countries in WTO; the developing nations are not agreed to that for several reasons. However, let us see how the worked for other countries in the globe who accepted it to the letters. Let us take very recent example of Ghana. Ghana implemented the “liberalized economic system” in the early 8s, at least 10 years before India. The country was projected by the World Bank and the IMF as success story of Africa. But the reality was exactly otherwise. The liberalized economy in Ghana has ruined its agriculture and at the same time failed to boost any substantial manufacturing industries. The mantra of consumerism has failed there too. The poor consumers in Ghana were denied the price stability and pushed to further predicament. The free trade meant lack of price stability for the people of Ghana, since the government has bowed out of price-setting to make way for the market. Likewise the poor producers face highly uncertain prices, they sell cheap in the harvest season and buy the same back for their own consumption later in the year when the price have risen. The situation has worsened further due to cheap imports killing the local industries or produces. The local traders find that since markets have been liberalized, it is not worth buying from farmers in remote districts, as whatever they pay will be undercut by cheap imports. Even local companies that might be expected to enjoy the freedom to source from the cheapest place, argue that they would rather have long-term relationships with local suppliers, if those suppliers could be helped to increase their productivity and meet local demand. All these groups want some form of protection from the uncertainty and volatility of the market. Poor producers want sell their goods first, before markets are flooded with cheap imports. Poor consumers want the government to set up storage systems, so that prices remain more stable throughout the year. Traders want a market where local products can hope to compete with imports. Moreover, local companies want the local industries should be supported and protected to some extent to face the competition form cheap imports. It is always favored to buy locally than imports for price stability. This is the experience of “Free Trade Regime”.
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