Home Depot Foreign Direct Investment

Paper Summary:

This paper aims to help present an understanding of Home Depot and its potential options in the international markets. The company is reviewed in three different contexts. First it is reviewed as if its sole purpose was to only export goods. Next it is reviewed as if it was to enter into a joint venture with a foreign company and finally it is reviewed as if it was involved in a direct foreign investor scenario. Because other options for expanding into the highly competitive global market place are available, a few other scenarios are presented that could interest the likes of the United States' second largest retailer behind only Wal-Mart. The paper also looks at options such as the World Bank and how the many new Free Trade Agreements and partnerships would work for Home Depot as well as how world markets effect the organization. The major focus of the paper is to hone in on direct foreign investment and some of the pros and cons of cultures, political environments, financial institutions, currency exchange effects.

From the Paper:

"Not only does Home Depot have to content with the fluctuations to the worlds ever changing economy, it also has to understand the competition from small local providers, other box stores like Lowe's and Hechinger's, as well as indirect competition traditional and high end retailers. Exporting products therefore may not be a good option. But, exporting their stores as a complete package may in fact be what the doctor ordered. The world has seen a trend in increased home furnishings spending as well as reduced travel expenditures which entails increases in consumer spending for home improvements. "Individuals and families spending more time in their households translate to dollar signs for the home furnishings industry." (Yahoo Finance)"

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