Economic Analysis of Wal-Mart/Target Hybrid Venture in Mexico

Economic Analysis of Wal-Mart/Target Hybrid Venture in Mexico |

|

|

Globalization of a Wal-Mart/Target hybrid into Mexico and the problems associated with an expansion into a foreign county without adequately studying all situations before entering |

|

James de Griz |

10/16/2009 |

|

Economic Analysis of Wal-Mart/Target Hybrid Venture in Mexico

Globalization is a vast part of all of our daily lives. Many of the products we use on a daily basis are not products that have been made in the United States, and many of the companies and business that we visit daily are international icons and have a large stake hold in other countries. Some examples of businesses that have thrived internationally are Starbucks, McDonald's, and Pizza Hut. A Target/Wal-Mart Hybrid (hereafter referred to as Tar-Mart) would also be a major drive of globalization in terms of costs, markets, competition, work force, technology innovations, and political organizations. Mexico has already started to export auto parts, washing machines’, vacuum cleaners etc. to US consumers thus, could they penetrate so deeply could they not gain an advantage? A Tar-Mart must also consider what competition they will have once established in Mexico. Is it possible “Gigante” or the US “HEB” have already entrenched themselves in the market; or possible England’s “Tesco’s” are already making plans into Mexico. All of these situations need an economic theory to justify going into a more International Setting hence, the question “Which one?”

In this highly materialistic world that we live in, success is generally measured in financial terms. The same is true in politics, where the success of a politician, especially the President, is measured by how well the economy did during his term in office. It is specifically measured by how well they bring down unemployment, grow the economy and fight inflation. Essentially, productivity is a ratio to measure how well a country converts input resources...