... This will decrease their production cost. Based on the supply and demand graph, lower production cost will also help lower the price of the product. For Wal-Mart, in their fiscal 1999, "the foreign currency translation adjustment increased by $36 million to $509 million primarily due to the exchange rates in Brazil and Canada." (Wal-Mart Report) Their revenue increased $ 73 million in 1998 "primarily due to exchange rate in Canada." (Wal-Mart Report) Also, American companies are bigger in size and their production is higher compare to their expenses. They can "attack the excessive margins while maintaining a wide selection." (Wellum, 8) Therefore, they can afford to sell their products at a lower price unlike the Canadian companies. It is almost like a cycle for these American companies. With the low prices, they get more demand for their goods. High volumes in turn "[lead] to lower purchasing prices, which further enhanced ...

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