Walmart Has Struggled to Find Success in a Few Foreign

question 125

Multiple Choice

Walmart has struggled to find success in a few foreign countries. Experts say Walmart ignores social-cultural factors when attempting to expand to foreign locations. Perhaps Walmart should abandon their direct investment approach and instead ______, which will require a significant investment, but provide Walmart with a fully functioning organization in the foreign country.

• A) acquire an existing company
• B) franchise
• C) export products
• D) seek a joint venture

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Definitions:

Market Equilibrium

The point at which the quantity of goods supplied equals the quantity demanded at a particular price.

Emergent Equilibria

The spontaneous attainment of stability within a complex system where individual components interact and adjust to changing conditions without central control.

Invisible Hand

A term coined by Adam Smith to describe the unintended social benefits resulting from individual actions.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied.