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

question 91

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,if true,supports the assertion that Wal-Mart is an ethnocentrically oriented corporation?

• A) Wal-Mart offers top managers mobility premiums because it frequently transfers them from one country to another.
• B) Wal-Mart usually succeeds on an international level because the firm actively works to support local charities.
• C) Wal-Mart rarely experiences cultural misunderstandings because of its tendency to hire locals to fill management positions.
• D) Wal-Mart aims to maintain a unified organizational culture by filling foreign management positions with Americans.
• E) Adaptability screening eliminates problems associated with transferring Wal-Mart managers and their families abroad.

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Definitions:

Net Income

The company's net income, which remains after subtracting all costs and taxes from its total revenue.

Special Order

A customer request for a product made to their specific requirements, which may differ from the seller's standard offerings.

Shipping Costs

Expenses associated with the delivery of goods from the seller to the buyer, which can include packing, postage, and insurance costs.

Cash Payback Formula

A method used to calculate the amount of time it takes for an investment to generate cash flows sufficient to recoup the initial investment cost.