Answer to 3:

When an option between the speculative, hedge and flexible strategy is given, it would be

advisable to choose the hedge strategy for a small electronics manufacturing company which is

just going to develop a global strategy. This firm mainly does not have any prior experience in

handling the business in the global front hence it would be advisable to follow the hedge

strategy. The hedge strategy mainly refers to the elimination of the volatility which is mainly

associated with the price of the various assets which would take the various offsetting types of

positions in it (Heller, 2017). The strategy of the hedging is mainly involved with the balancing

aspect of both the profit and the losses which is underlying within the assets that are underlying

nature. The strategy that is followed by the hedgers are mainly considered to be opposite to the

speculative ones, because in the speculative strategy, the strategists are mainly focused upon

making profit and mainly relies upon quick fast paced selling as well as buying aspect which are

mainly based upon educated guesses, hunches and theories of the moves of the price. On the

other hand, the speculative strategy mainly depends on protecting the assets no matter what

happens during the situation of the price move (Michelson, et.al. 2018). If a large company is

involved in the same scenario, then it can use a flexible strategy because it would have a

considerable large amount of assets and can risk as well as protect their assets depending upon

the demand of the global market.

Answer to 4:

Some of the examples of the global products are beverages such as Coca-Cola, food chain

Mcdonald, Colgate toothpaste, Levis Jeans, etc. The examples of regional products are cooking
oil, salty snacks, biscuits, etc. Some of the reasons behind the fact that some of these products

are best suited for the regional and global products are because of the following:

Brand Recognition: It has been observed that some of the brands have actually made a larger

global image for the aspect of desirability as well as quality which cannot be customised based

upon the regional or the domestic tastes. For example: luxury products for niche markets.

Cultural Differences: Apart from this, there are some of the products which reflect the long

term cultural traditions for a particular region which may not be accepted in any other region.

For example: some regional foods which are not globally accepted everywhere such as beef.

Answer to 6:

a. One of the most important reasons behind the expansion of Walmart in the international

market instead of mere expansion is that the company has lost a viable share of the

market within its domestic market and hence is trying to penetrate into the new

international markets. It will help them in the diversification of the markets and enhance

the consumer reach.

b. Walmart will be able to purchase from countries who are offering lower prices of the

materials and will be able to save more and use those savings in other business

operations.

c. This would mainly help the company Walmart to calculate the forecasts of the demand in

an easy way and will help them to control and manage their suppliers.

d. With the e-commerce business excelling, Walmarts can be forced to shut down their

stores which are poorly performing which can be a pitfall. Walmart can also certainly

invest in countries shc as Europe, Asia and Africa by the usage of centralisation and

advanced technology for gaining a good customer base from these nations.
References:

Heller, F.K., 2017. Technological innovation applied to walmart and tesco’s supply

chain (Doctoral dissertation).

Michelson, H., Boucher, S., Cheng, X., Huang, J. and Jia, X., 2018. Connecting

supermarkets and farms: the role of intermediaries in Walmart China's fresh produce

supply chains. Renewable Agriculture and Food Systems, 33(1), pp.47-59.