The changing relationship between manufacturers and the so-called "big-box" retailers is exemplified by Wal-Mart. This societal change has contributed to the bankruptcy of some American businesses and a caused unemployment for some American workers. While Wal-Mart supporters tout the advantages of one-stop, low-cost shopping, others are alarmed at both the outsourcing that has made these low prices possible and how large retailers affect smaller, local businesses.
• Outsourcing is when a business obtains services or products used in manufacturing, such as parts for a television set, from an outside (often overseas) supplier or manufacturer in order to cut costs.
• Offshore Companies conduct most of their business outside of the country in which they are incorporated. These companies are also known as non-resident companies.
• Push Production is when manufacturers of products decide what to produce, how much to produce and the price of the product.