problems accessing it.) Watch the following video (https://www.youtube.com /watc
ID: 343375 • Letter: P
Question
problems accessing it.) Watch the following video (https://www.youtube.com /watch?v=sq4RpJdnzko), which details efforts in Austin, Texas to "Keep Austin Weird." The idea is to make sure the businesses in town stay local and unique, and to encourage residents to buy from local mom and pop stores instead of large chain stores. How can purchasing goods from large national chain stores reduce the effectiveness of the multiplier on the local economy? Should communities welcome large chain stores or fight against them? Explain your answer- being sure to include economics content as part of your explanation Be sure to post at least two times -post your original answers and then also post comments to other students' posts. Be sure to cite any sources usedExplanation / Answer
Answer:
Local Residential Stores: These are the stores opened by the local resident people of the town/city so that they can sell general use products to local people and earn some money and run their home. Thus it is an small scale store which can help to survive the individual people in their home location.
National Large Chain Stores: these are the national level business corporate which creates the large chain of stores in most of the key locations in the country to capture most of the business of the nation in terms of store/ retain business. This is a large set up which covers the complete market segment for the country. This set up did not let to survive the small level stores which are created by local residential peoples in their home city/home town.
Impact of large national store chain business as a reduction in multiplier on the local economy : The large national store chain business captures the whole market business and the profit goes into one pocket i.e. to the national large store chain business only. It did not allowed the local residents to earn the profit because local stores will not be able to survive in the presence of large national store chains, because they provide more products, better service, low cost options as compared to the local stores. If local stores are not able to make profit, then this will not let the revenue generation to multiple people in the market. Thus the economy of the nation will not grow because; the revenue is generated by single business/pocket and not by multiple pockets/individuals. Economy can improve if most of the people are able to generate revenue / profit. In this case the economy is not improved as the revenue is collected by a single pocket only.
For this reason it is suggested to people to purchase the general use products from the local mom, pop, stores so that local residents gets the benefit and economy of the country can be improved.
Communities should avoid the large national store chain so that the local community people gets the benefit of generating revenue by servicing the community people and helps in growing the economy of the nation.
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