Scenario

Walmart is the biggest retailer in the$$ world, with sales of$$ $$135$ billion in $26$ countries outside the$$ U$.$S$.,$ but it$$ doesn't have stores in some of the$$ world's biggest markets. Walmart is not in$$ Germany, South$$ Korea, Russia, or India.

Walmart announced that it is breaking up with its Indian$$ partner, Bharti$$ Enterprises, which means plans to open hundreds of Walmart supercenters around India$$ won't be realized soon. In the official$$ statement, Scott$$ Price, head of Walmart$$ Asia, referred obliquely to$$ "investment conditions" as part of the problem.

Price had been more direct in an Associated Press interview two days before the announcement at the$$ Asia$-$Pacific Economic Cooperation summit. Price said that the Indian$$ government's requirement that foreign retailers source$30\%$ of the products they sell from small and$$ medium$-$sized Indian businesses is the$$ "critical stumbling$$ block." Walmart does have a wholesale business in$$ India, which it is keeping.

Price$$ didn't mention that the Indian government is investigating allegations that Walmart violated rules governing foreign investment in the retail industry or that Walmart is conducting an internal probe on possible violations of U$.$S$.$ anti$-$corruption laws.

Walmart was unable to successfully expand into Russia either. For nearly six$$ years, it looked to buy a local company that could ease potential cultural and bureaucratic misunderstandings. Walmart lost a bid for a promising$$ partner, a discount chain called$$ Kopeyka, in $2010.$ Walmart later closed its Moscow office after saying price disagreements had stalled plans.

After opening stores in Germany and South$$ Korea, Walmart closed them in $2006.$ Germans$$ didn't like Walmart employees handling their groceries at the checkout$$ line, male customers thought the smiling clerks were$$ flirting, and perhaps more$$ importantly, many Europeans prefer to shop daily at local markets. In South$$ Korea, Walmart also stuck to its American marketing$$ strategies, concentrating on everything from electronics to clothing and not what South Koreans go to big markets$$ for: food and beverages.

$$It$\text{'}$s possible that a lack of cultural understanding stymied$$ Walmart's efforts and has caused the retailer to slow global expansion efforts.

Question content area bottom

Part $1$

After opening stores in Germany and South$$ Korea, Walmart closed them in $2006.$

True

False