Final answer:
Walmart's entry into Ethiopia could bring advantages like employment opportunities, investment in infrastructure, technology spillovers, and access to consumer goods. However, it might also negatively impact locally owned businesses and concentrate economic power outside the local economy.
Step-by-step explanation:
The entry of Walmart into the Ethiopian market could have multiple impacts. An operation such as Walmart's can bring employment opportunities and potentially raise the standard of living for local employees. Workers could benefit from access to jobs that are relatively well-paying and reliable compared to the local standard, thus infusing the community with additional income. Additionally, Walmart's investment in local infrastructure, which could include roads, power lines, and potentially factories, can have long-term positive effects on Ethiopia's economic development.
Furthermore, the presence of a multinational corporation (MNC) like Walmart can lead to technology spillovers, as the company introduces new technologies and potentially enhances the skill set of the local workforce. This can benefit other industries in the host country over time. Walmart could also contribute to the local economy by offering a variety of high-quality consumer goods at competitive prices, potentially improving access and the overall living standards of the population.
However, one must also consider the potential drawbacks that come with the presence of large MNCs like Walmart. There's a risk of undermining locally owned businesses, which could lead to a concentration of economic power and wealth outside the local economy. The potential reduction of local competition and the impact on associated businesses such as manufacturers, transportation, and media outlets should be carefully weighed.