$35$ points

$[$GLO$1$B$]$ For the first few decades of its existence, Walmart's growth was fueled by a large domestic market. However, as the U$.$S$.$ market has become saturated, Walmart's attention has shifted to international expansion. Walmart's extraordinary success in the U$.$S$.$ can be attributed to a well$-$formulated strategy of low prices, supplier relationships, logistics$,$ and wide product mix. As Walimart, seeks to expand globally, it needs to consider its ability to replicate its U$.$S$.$ business strategy in foreign markets.

Why should Walmart consider economic factors when entering foreign markets? $($Select the best answer from the options provided below.$)$

With the growth in online shopping customer buying habits are changing as they are increasingly seeking the convenience of being able to shop from their homes. As such, economic factors are less important than making sure that Walmart has an online presence in all foreign markets.

It is important for Walmart to know if the standard of living and purchasing power of a foreign market's people is increasing or stagnant, if unemployment is flat or high, or if inflation is rising. These factors impact product pricing, borrowing decisions, employee recruitment cost, and consumer spending, among other considerations of a global business strategy.

Analysis of economic factors and indicators such as standard of living and purchasing power of a foreign market's people is increasing or stagnant, if unemployment is flat or high, or if inflation is rising will give Walmart greater confidence in its international expansion decisions and help to identify potential benefits and drawbacks of entering foreign markets.

Understanding the culture and shopping practices of a foreign market is the most important consideration in global business expansion. It will help Walmart adapt its strategy to suit the needs of the customers in the markets that they choose to enter.