Final answer:
Walmart established a joint venture with Mexico’s largest retailer, viewing Mexico as an untapped market to expand its retail operations. This strategy utilized the local expertise to mitigate risks associated with foreign market entry and capitalize on new business opportunities.
Step-by-step explanation:
When Walmart expanded into Mexico and created a joint venture with the country's largest retailer, this strategy suggests that Walmart's management viewed Mexico primarily as an untapped market. Given that Walmart's business model is often critiqued for its negative impacts on local economies—such as the 'Wal-Martization' effect where local businesses suffer and economic benefits are not retained locally—it is likely that Walmart saw Mexico as a new market to expand its retail dominance. Joint ventures in foreign countries are a common strategy for multinational companies to establish a presence in new markets by partnering with local firms, thus leveraging local expertise while mitigating some of the risks associated with entering a foreign market.
The move by Walmart corroborates the trend of US corporations taking advantage of opportunities in Mexico, such as the proliferation of maquiladoras, to capitalize on cheap labor and increase profits. By partnering with Mexico’s largest retailer, Walmart could adapt to local conditions more quickly and effectively manage the perceived risks of investing in a new market. It demonstrates a strategic approach where business opportunities—rather than threats or competitive rivalry—are the primary focus.