The global supermarket chain, Walmart, operates 10 500 stores in 24 countries. It has monopsony power when buying agricultural products and employing labour in these countries. A 2021 study suggested that Walmart buys these agricultural products at a lower price than when they are sold to other businesses.
Evaluate the likely impacts of monopsony power on employees and suppliers.
Refer to a firm with monopsony power in your answer.[20. marks]