Political Risk Assignment Example | Topics and Well Written Essays - 250 words

Political Risk - Assignment Example Moreover Wal-Mart customers are based largely U.S population’s beliefs (Overholt, 1982). The strategy used by Wal-Mart to deal with political risk was first by opening up of new Wal-mart super-center in certain cities and areas. They had to make good financial decisions, those areas which were disturbing the welfare of store and not making good profits were avoided. Wal-mart knew profits were not expected in areas which has down falling economy. For example Wal-mart would initiative risk by making more than 1500 jobs in their stores. If the economy goes down the jobs would be eliminated, and they incur a financial loss because a lot of money has been used in training those employees. This brings financial burden to the company. They expanded their stores in Brazil but it has its risk itself. Looking for people to hire and training them took a lot of money and time. Although, Brazil is a wealthy nation like U.S any economic downfall if it was to happen would make the company to incur lose to people, stores and money (Overholt,