Yes, to a certain extent I agree with the conclusion of the author that retailer
ID: 373672 • Letter: Y
Question
Yes, to a certain extent I agree with the conclusion of the author that retailers are earning enough because their purchasing cost has decreased but they have not decreased the selling price, hence the customers have to bear the pain and retailers are enjoying the luxury of increased profits by selling food products at a higher price. The right practice should have been that retailers are getting products at low prices so they should also pass those products at a lower cost. FDI has resulted in lower costs but the benefit has not passed to the consumers.
Explanation / Answer
Market Dynamics in Food Supply Chains: The Impact of Globalization and Consolidation on Firms’ Market Power Eleni A. Kaditi The author’s final conclusion is that “increased concentration in food retailing (due to increasing consolidation and foreign investment) has resulted in food prices increases, as retailers get their products at lower prices, but do not pass those savings on to consumers.” Do you agree with the author’s final conclusion? Why or why not?
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