In January 2009,Wal-Mart Acquired a Controlling Interest in Chile's Leading

question 38

Multiple Choice

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following questions is LEAST relevant to the decision to fill management positions in Chile with expatriates?

• A)What will be the relocation and compensation costs to Wal-Mart of using expatriates?
• B)What level of corporate control is needed for opening the new Wal-Mart stores?
• C)What is the planned Wal-Mart marketing strategy for the new stores in Chile?
• D)What is the typical attrition rate for expatriate employees at Wal-Mart?

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Definitions:

Trading of Securities

The act of buying, selling, or exchanging financial instruments such as stocks, bonds, and options in the financial markets.

Institutional Investors

Organizations that invest large sums of money into securities and assets, including mutual funds, pension funds, insurance companies, and endowments.

Mutual Funds

Investment vehicles made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Pension Funds

Investment pools that pay for workers' retirements. Contributions are made by employers, employees, or both, and the funds are invested on the employees' behalf.