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Global Business Environment and Comparative Advantage for a US Company

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Select a U. S. company with global operations. Write a project in which you do the following:

Discuss the firm's activities outside the U.S.
Identify which economic concepts, such as comparative advantage, apply to your firm.
Explain how these economic concepts can be used to address the firm's problems and opportunities?
Identify which economic and political policies affect your firm and explain how they impact business decisions.
How does your firm use technology to strategic advantage?
Discuss the impact of globalization on the firm. Are there any effects on its cost structure, markets, currency risk, and overall strategy? Be sure to provide a definition of globalization in your answer.

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Solution Summary

The chosen U.S. based company with global operations in this paper is Walmart. This paper will help the reader to understand impact of economic and political policies on the business decisions. The response addresses the queries posted in 886 words with references.

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The response addresses the queries posted in 886 words with references.
// The chosen U.S. based company with global operations in this paper is Walmart. This paper will help the reader to understand impact of economic and political policies on the business decisions. The paper will also emphasize on how the company uses technology as its strategic advantage along with the impact of globalization on the activities of the firm. In the first section we will be explaining about the activities of the firm outside the U.S. We will be also discussing about the economic concepts that can be applied to the organization and how these concepts help the firm to solve its problems and the opportunities that are existed in the market.//

Walmart has its retail stores in almost 27 countries. It has 55 different banners. The company has acquired the Bomperco stores in Brazil in order to enter and develop the market in Brazil. The company believes in expanding business in the global market by catering to the needs of the local people. The company procures material and provides employment to the local people of the country, where it has its retail stores. The company produces and distributes its products in the global market (Export Solutions, 2011).

Walmart provides employment to the local people of the country where it operates. Consumers buy products from Walmart stores because they are getting quality products at low prices and satisfy their tastes and preferences, which provide Walmart a competitive advantage over its rivals, by exercising the strategy of cost leadership. The company ...

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Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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