Essay --

INTRODUCTION This consultancy report is addressed to Walmart, the leading multinational retail company of the world planning to enter in recently liberalised and reformed Indian retail sector, where foreign direct investment has been allowed cent-percent in real terms. The report deals with four specified aspects. Firstly political system and risk of India is analysed from the perspective of Walmart. Next market potential is assessed with reference to opportunities and challenges. Further trade and investment barriers are detailed with reference to the observation of the World Bank. Finally entry mode and location choice is recommended for Walmart to operate in India, where the likely cross-cultural management point is also made. MAIN BODY Assessing Political System and Risk Political risk assessment is a vital part of international investment by multinational companies, where political risk all concerns to the risk that a host country ctreate through its political decisions that might be dterimental for on the success and survival of the multinational companyies in profitable manner. Unfavorable political system or policies might result in detriments in the extensive damage because of revolution to those of a more fiscal nature, in the form of the formation of laws that put off the movement of capital (Phung, 2009). Naturally whilst investing in Indian market Walmart needs to close assess the likely political risk situation in the country, from the perspective various factors relating to political risk. As Dà ¶rrenbà ¤cher and Geppert .(2013) argue that multinational companies might be breeding grounds for internal political pressure in a host country where fight for control amid head quarters and their subsidiaries might dis... ...minate the trade and investment barriers from the perspective of multinational companies such as Walmart. Hence, Walmart can hope a better trade and investment environment in Indian. It can work with the government in the country together with World Bank for negotiating maximum in its favour in the new policy environment, Walmart has more opportunities and challlenges, but opportunities may well be exploited only in the case of choosing the right entry mode. Walmart has two potential options in the forms aquisition or creating subsidiary in the country. The former would be comparatively more effective considering the unorganised nature of Indian retail sector. The success of this multinational company in India will be largely depend on cross-cultural management, particularly in the context of standardisation versus adaptation whether the later can be recommended.