Instructions: Read the article and answer all questions listed below in a one page essay.
In 1997, Walmart expanded in Germany with the intention to implement its successful business model. They posted about $6 billion in losses and decided to leave Germany in 2006. In this New York Times article, you can see that Amazon is also facing some problems in Germany. As emphasized in this course, a key principle of managerial economics is understanding incentives. In your opinion, is Amazon the next company to leave Germany? Are American business models compatible with the European culture?