Final answer:
Walmart's transactions with suppliers are highly efficient and cost-effective due to its internal Internet-based system and its ability to beat competitors.
Step-by-step explanation:
One of the factors that makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations is its internal Internet-based system. This system allows for seamless communication and coordination between Walmart and its suppliers, streamlining the procurement process and reducing administrative costs. For example, suppliers can easily update inventory levels, receive purchase orders, and track shipments in real-time through the system.
Another factor that contributes to Walmart's efficiency is its ability to beat competitors. By leveraging its economies of scale and negotiating power, Walmart can negotiate lower prices with suppliers, which in turn lowers its cost of operations. This competitive advantage allows Walmart to offer lower prices to customers while maintaining healthy profit margins.
It is worth noting that while Walmart may engage in outreach programs to placate small retailers, this may not directly contribute to the efficiency of its transactions with suppliers or lower its cost of operations. Similarly, while Walmart's ability to influence foreign governments may have strategic benefits, it is not a direct factor in the efficiency of its supplier transactions or cost of operations.