Final answer:
The 'Wal-Mart effect' pushes manufacturers to sell products at ever-lower prices, often obtained by manufacturing abroad.
Step-by-step explanation:
True. The 'Wal-Mart effect' refers to the impact that Walmart's business practices have on the manufacturing industry and the global economy. Walmart puts pressure on manufacturers to sell products at lower prices, often by manufacturing them abroad where labor costs are cheaper. This is done in order to offer lower prices to consumers in core nations. For example, many clothing corporations have shut down their U.S. factories and relocated them to countries like China to take advantage of lower labor costs.