The Change Mariner

Wal-Mart Invades, and Mexico Gladly Surrenders

New York Times:

The company that ate America is now swallowing Mexico.

Wal-Mart, the biggest corporation in the United States, is already the biggest private employer in Mexico, with 100,164 workers on its payroll here as of last week. Last year, when it gained its No. 1 status in employment, it created about 8,000 new positions -- nearly half the permanent new jobs in this struggling country.

Wal-Mart's power is changing Mexico in the same way it changed the economic landscape of the United States, and with the same formula: cut prices relentlessly, pump up productivity, pay low wages, ban unions, give suppliers the tightest possible profit margins and sell everything under the sun for less than the guy next door.

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Though it came to this country only 12 years ago, Wal-Mart is doing more business — closing in on $11 billion a year — than the entire tourism industry. Wal-Mart sells $6 billion worth of food a year, more than anyone else in Mexico. In fact, it sells more of almost everything than almost anyone. Economists say its price cuts actually drive down the country's rate of inflation.