Final answer:
Home Depot's strategists likely examine the strengths of incumbent rivals when selecting a country for expansion to comprehend the competitive environment and determine the market's potential for success.
Step-by-step explanation:
When Home Depot's strategists consider expanding into a foreign country, assessing the strength of incumbent home supply rivals is a crucial step in their evaluation process. This consideration helps them understand the competitive landscape and potential challenges they may face in the new market. Various factors such as comparative advantage, environmental regulations, and dependence on key products are among the elements that could influence a country's attractiveness for expansion.
Furthermore, the concept of absolute advantage, as illustrated by Brazil's dominance in beef production and the United States in autos, showcases how comparative productivity can impact international trade decisions. Evaluating the long-term viability of foreign direct investments, the importance of adhering to environmental protection laws, and the risks of becoming overly dependent on imported goods are also integral to strategizing international business growth.