Another possible indicator that Wal-Mart should look upon before entering into the market of India would be the present condition of infrastructure in India relative to other countries.
Well, among the developing countries in Asia, it is India that spends less on improving different infrastructures that can be used in order to facilitate efficient and effective business transaction in the market (Runckel, 2005). The less developed infrastructure is, the more it becomes unsuitable for foreign investments.
Infrastructure, as for the scope of this paper, means roads, bridges, communication facilities and buildings. Compared to China and Southeast Asian countries, India is already being left behind by other Asian nations in terms of infrastructure development. Conclusion and Recommendation Given the above market conditions of the Indian economy, therefore, it would be beneficial for Wal-Mart to invest in India in order to utilize the large potential market in the said country plus the various government incentives like lower interest rate on borrowing that the Indian government grants to foreign investors.
In addition to this, the fact that the Indian market offers sustainable growth to Wal-Mart is already enough reason for the Giant retailer to make business in India.
References
O’Connor, A. (2007). Culture Clash on the Horizon as Wal-Mart comes to India. Retrieved March 15, 2008, from http://business. timesonline. co.
uk/tol/business/industry_sectors/retailing/article2211075. ece O’Meara, K. P. (2003). Cheap Labor at America’s Expense; As U.
S.
Corporations Outsource their Information-Technology Operations to the Lower-Wage Countries, American Workers are Left on the Outside Looking in – The Nation. Retrieved March 15, 2008, from http://findarticles. com/p/articles/mi_m1571/is_2003_May_27/ai_102766093 Runckel, C.
W. (2005). Asia Outsourcing: China, India and Southeast Asia as Sourcing Partners. Retrieved March 15, 2008, from http://www.
business-in-asia. com/wire_journal_oct2005. html
