Walmart and China were two different examples. Ask anyone who has dealt with Walmart as a supplier. I think Hog can speak to some of this. They typically come in and work with a supplier to get the suppliers product on Walmart's shelf. Walmart requires them to supply X number of the product. enough where a smaller supplier either has to increase production or only supply to Walmart. Walmart will often require that that supplier only works with them. After this supplier has tied itself, either through contract or percentage of sales, Walmart comes back and says we will buy this product at a cheaper price. supplier has a choice. Either cut Walmart and find some other shelves to sell on, and who can replace Walmart, or take the loss from the price. a good number of suppliers are stuck in this trap.
China coerces but slashing their own prices and requiring their companies continue to produce beyond demands. again the goal being is by the time they correct the pricing they are the only ones, or who a much larger share, of the market. You and 8188 seem to be fine with it because it gives us cheaper crap. Steel is a perfect example if you need specifics. It was a big reason for the Brexit. the EU was not allowing Britain to make changes to their steel industry to be competitive with Chinese pricing. that ticked off a good number of people.
again I am getting, and have gotten, mixed messages from guys, you 8188 and Huff. Its a good thing (acceptable maybe a better word) if the market manipulates pricing. but it becomes the absolute worst thing imaginable if the government does it. even if the government does it forestalls a worse (vs higher prices) future for their nation.
