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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (4834)3/14/2006 2:14:43 PM
From: energyplay  Respond to of 220433
 
China should buy a stake in Wal-Mart, then let Wal-Mart build many more stores in China. Besides making the investment work, Wal-Mart would bring goods at lower costs to rural areas, increasing their standard of living. This appears to be important to China's internal agenda.

It would also help build an internal market of for China's products, which will be very useful when Western consumers hit their credit card limit.

The high cost of distribution is one barrier to building an internal market which can reach rural areas.

Of course, China can figure how to do this (ultra low cost volume distribution) in about 5 years or less....if they want to wait ;-)

One of the other really good retail distribution companies is Costco, which merged with Price Club long ago.

Unfortunately, some of the founders had leftist politics, so this may make Costco unacceptable....



To: TobagoJack who wrote (4834)3/14/2006 2:19:28 PM
From: Elroy Jetson  Respond to of 220433
 
That's what I suggested China do when they embarrassed themselves trying to purchase Unocal.

Its entirely logical to me that China should purchase Walmart.

1.) The current Market Cap of $190 billion would suck up a lot of China's dollar reserves.

2.) China would be vertically integrated in the "Crap from China" market, from raw materials to check-out counter.
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