Answer Happy

: Walmart has recognized numerous opportunities to expand in
foreign countries and has assessed many foreign markets, including
Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. It has
opened new stores in Europe, Asia, and Latin America. In each case,
the firm was aware that it did not have sufficient understanding of
the culture of each country that it had targeted. Consequently, it
engaged in joint ventures with local partners who knew the
preference of the local customers.
a. What comparative advantage does Walmart have when
establishing a store in a foreign country, relative to an
independent variety store?
b. Why might the overall risk of Walmart decrease or increase as
a result of its recent global expansion?
c. Walmart has been more cautious about entering China.
Explain the potential obstacles associated with entering
China.