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Impact of a shutdown of a factory, increase in unemployment rate and opening of a new Wal Mart store in a town.

You are a member of the City Council of Mid ville , California, a town of 10,000 residents, comprised primarily of ‘middle-class' blue-collar laborers. Recently, one of the town's largest employers shut down a factory, resulting in an unemployment rate of 10.2%, well above the national and state averages. Due to relatively attractive property values, Wal-Mart has proposed building a mega-store in your town. Midville's independent shopkeepers, who strongly supported your last campaign, argue WalMart will drive them out of business. They have approached you to sponsor an ordinance to prohibit Walmart's store in Midville. Walmart has told the council they may approach Smailville, 15 miles down the road, if they can't build in Midville. Suppose there are five members of the council also the other four are split on the issue. What do you do, and who is damaged or helped by your action?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M918259

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