Large companies such as Wal-Mart have been accused in the past of predatory pricing. The accusers argue that a company such as Wal-Mart comes into a smaller community and because of its buying power can set its prices much lower. Accusers go on to state that Wal-Mart will deliberately undersell small companies within the community until these companies are forced to close, at which time Wal-Mart will raise its prices. Wal-Mart, on the other hand, argues that its pricing practices are not predatory, rather it prices products in accordance with its ability to buy and distribute its products nationally, thus keeping prices low.
Discuss the ethics of this situation.
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