Market Power Drives Harder Bargains. Can SMEs Compete Globally?


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Is there a widening difference between the profitability of small businesses and large?  Some say there is and blame globalization. Milton Ezrati, contributor for Forbes thinks otherwise:  “The winner-take-all character of global trade seems to get the blame for just about anything unfair or inequitable these days. But it would be a mistake to reach for this easy answer.”  He goes on to say …

Rather than drag out the perennial whipping boy of globalization, a better explanation might well lie with questions of market power. All may have access to the same suppliers, but larger firms, such as Walmart and Amazon, can drive harder bargains on price and delivery terms than smaller or mid-sized firms.

Is America losing its small businesses?  Read more.