2. How much of Wal-Mart’s success is due to NAFTA and how much is due to Wal-Mart’s inherent competitive strategy? Could any other US retailer have the same success in Mexico post NAFTA or is Wal-Mart a special case?

a.) NAFTA allowed Wal-Mart to operate in more than 15 countries while paying 3% instead of 10% import charges on their products thus enabling Wal-Mart to offer their “everyday low prices”. Walmart became on an even playing field with all the other retail stores, thanks to NAFTA, but Wal-Mart had a competitive strategy and they took full advantage of NAFTA’s implementation of lower tariffs. b.) Wal-Mart is a special case because of their competitive strategy; Founder of Wal-Mart, Sam Walton became involved in a joint venture with Mexico’s leading retail store called Cifra. They Opened Sams Club in 1991 to establish their presence there in Mexico, while the Canadian and American free trade negotiations were happening. c.) Wal-Mart purchased enough shares in the company to take over and expand into Central American starting a retail powerhouse. Nafta opened up the gates and Wal-Mart took full advantage. d.) Purchased woolco stores in Canada as well. Implemented same strategy.

4. What do you think of Wal-Marts strategy in Mexico and Central America and how have bilateral agreements and geographic proximity played a role in their success? What challenges do you think Wal-Mart de Mexico e centramerica will face as it continues to expand in Mexico and Central America?

a.) The way Wal-Mart conducts their business internationally in nothing short of amazing. They have countless binary agreements with countries since they have a plan of establishing Wal-Mart subsidiaries and eventually expanding their business to fit the culture of whatever country they are in. b.) They have not only giant retail stores but also grocery stores