Wal-Mart’s global operations
1. Distinguish following international entry modes: acquisitions, greenfield investments, and joint ventures. Outline what factors Wal-Mart needs to consider when choosing between these entry modes?
(25 marks)
2. Explain what factors are likely to have attracted Wal-Mart to set up its operations in emerging economies. Use Mexico as the example to support your answer.
(20 marks)
3. Compare the risks that Wal-Mart faces as a result of its investments in both developing
and developed economies.
(30 marks)
4. Discuss the view that the benefits of foreign investment such as that by Wal-Mart in
Mexico outweigh the disadvantages.
Case Study Materials
1. Attached article: Leonardo Iacovone et al, ‘The two faces of Wal-Mart in Mexico’.
(25 marks)
2. Beata Javorcik et al, ‘Openness and industrial response in a Wal-Mart world: a case study of Mexican soaps, detergents and surfactant producers’, World Economy, vol.