Walmart Foreign Expansion Case Study Example | Topics and Well Written Essays - 250 words

Walmart Foreign Expansion - Case Study Example Walmart gradually changed the Mexican merchandising culture to American as it expanded its operations in this country. It customized its products and it lowered their prices which resulted in Mexicans changing their shopping habits as they begat to visit large retail shops. This attributed to Walmart’s success in Mexico. 2. In order to succeed in China, Walmart should adapt to the Chinese culture so that it can mesh it with its merchandising strategy. For instance, Walmart has discovered that the Chinese prefer that fresh food be harvested in front of them and this is the exact strategy that it has adopted. Walmart has also discovered that in China, success requires it to embrace unions and it has adopted this strategy which is in stark contrast to America where unionization is opposed. This has positively contributed to the company making inroads in China. 3. It is quite challenging for a company such as Walmart to change the culture of the nation where it is doing business. Consumers in different nations have their own culture which may not be easily changed. However, in order to be successful in such nations, it is imperative for the company to adopt the local people’s culture and try to mesh it with its strategy. This is likely to appeal to the interests of the customers rather than fully changing their culture which they will

Diversification of Portfolios in the Global Financial Market Essay

Diversification of Portfolios in the Global Financial Market - Essay Example The problem of domestic surplus also has its solution in the global market. With a greater number of buyers, investors will be able to sell what no one in their country will be willing to buy. Simply put, with more buyers and sellers now more interlinked with each other, globalization has given the financial market a global scope. With a greater scope arise complexities and more risks and seemingly ironic instances. As countries have become more interlinked, they begin to share similar reactions to economic shocks. While similar reactions may make it easier for market analysts to determine how the world will react to different economic shocks, the presence of varying political and economic systems in the global financial market make external and internal economic forces more unpredictable. Greater unpredictability simply means greater risks. Again, the simple solution to this risk is the placing of eggs into different baskets. One could argue that it is pointless to diversify portfol ios in a financial market where countries almost always react in similar ways. However, as Bordo (2000) explains, emerging markets are more susceptible to fluctuations, â€Å"bust and booms† he calls them, as the result of â€Å"open capital markets.† This implies that while one emerging economy may offer huge returns in a couple of days or weeks, investors still need to diversify their investments because it is difficult to determine how emerging economies will do in the longer runs. The disadvantages of portfolio diversification.