China’s preference for sweatshops to supply the Arkansas- based behemoth impedes the creation of a vibrant domestic market. America’s addiction to cheap goods made in China helped kill a once-prosperous manufacturing sector.
India’s challenge in allowing Wal-Mart to enter its market is more complicated.
Criticism of prime-minister Manmohan Singh’s move to open India’s $400 billion retail market to overseas companies has been so intense that today the government suspended it until a political consensus is reached. Opponents say allowing 51 percent ownership by foreign retailers will harm small merchants that employ millions. more> http://tinyurl.com/7pl2qp6
- The Future of Retail
- India Suspends Plan to Allow Wal-Mart Entry Amid Protests (businessweek.com)
- Wal-Mart’s India Delay Means Politics ‘Killing’ Cucumber Farmers (businessweek.com)
- India suspends plan to let in foreign retailers (mercurynews.com)
- BJP sticks to opposition to FDI policy ahead of all-party meet (thehindu.com)