How does fluctuating fuel prices affect the growths of capitalism and the impact it has on a enterprise such as Walmart?
Ans. A rise in the fuel prices would be an indicator of inflation , which slower downs the economic growth. Now variation in fuel prices certainly effects the whole economy and capitalist firms are no exception. Fuel is an essential element for the capitalist firms and big firms , so variation in the fuel prices would lead to an instability in the cost structure of the firms and which would inturn effect the decision making. This would also lead to variation in the prices of products manufactured using petroleum. Big Firms like Walmart also need fuel for Carrying out Transportation of Goods and thus frequent variation in prices of fuels would imbalance the Transportation System of the firms which would effect the revenues too. Moreover , this variation also effects the people which are the ultimate consumers of the goods and services provided by these firms , so people would also get effected and which inturn would effect the customer base of Corporate Giants too.
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How does fluctuating fuel prices affect the growths of capitalism and the impact it has on...
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