Hypothetically, to operate Walmart in its new global location in India is government policies on foreign trade and investment. Government policies on taxation, infrastructure development and import/export regulations which can affect the opportunity for wholesaler's opportunities, The impact for regulations and restrictions can affect the sales force. A license from the Reserve Bank of India imposed by the government This new rule that requires all foreign companies to do any kind of business making it more difficult for foreign companies. (Reserve Bank of India, n.d.). Increased costs and reduced profits make it less attractive for foreign distributors to do business in India. Tax breaks provided by the government can make India more a more attractive market which can lead to creating jobs and increasing investments for distributors. Also, the political stability of the country might influence the market potential for agents. If the country is politically stable, then corporations are more likely to be interested in investing there. However, if the nation lacks political stability, corporations may be less inclined to invest there. The extent of corruption might also influence market opportunities for agents.

Question:

1. Regarding government policies on taxation, infrastructure development and import/export regulations which can impact Walmart in India, what is a particular policy or regulation in India which might impact Walmart.

2. How one would obtain a license from the Reserve Bank of India and what is required to get a license? How would it impact Walmart?