Deck 7: International Retailing Strategy

Question 1

Using a multinational strategy, retailers will/can:

A) change their products and image to reflect the international marketplace.
B) develop franchising initiatives based on its standardized form of doing business in return for a substantial franchise fee.
C) replicate their standard retail format and centralized management throughout the world in each new market.
D) expand rapidly but are learning little from their internationalization.
E) follow the international marketing practices of McDonald's, The Gap and The Body Shop.

Answer 1

A

Question 2

The foreign market entry method with the lowest risk is:

A) franchising
B) a joint venture
C) direct investment
D) a strategic alliance
E) owning a division or subsidiary in a foreign country

Answer 2

A

Question 3

The failure of Canadian retailers in the U.S. market has been due to:

A) both failing to conduct adequate research and not devoting enough money to the market entry
B) failing to conduct adequate research
C) not devoting enough money to the market entry
D) underestimating the competitiveness of the U.S. market
E) all of these

Answer 3

E

Question 4

A joint venture:

A) offers the lowest risk and requires the least investment
B) increases the entrant's risks
C) involves a retail firm investing in and owning a division or subsidiary that builds and operates stores in a foreign country
D) is formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared
E) is NONE of these

Question 5

A retailer owns a division or subsidiary that builds and operates stores in a foreign country under:

A) a strategic alliance
B) direct investment
C) exporting
D) a joint venture
E) franchising

Question 6

Some core competitive advantages for global retailers include:

A) Adaptability
B) Financial resources
C) Global culture
D) Recognize cultural differences
E) All of these

Question 7

What are some problems encountered by Canadian retailers which experienced failure when they expanded into the American market?

Question 8

Based on 2014 retail sales, the 3 largest retailers in the world are:

A) Walmart, Costco, and Kroger
B) Walmart, Target, Costco
C) Costco, Loblaws, Shoppers Drug Mart
D) Walmart, Target, Kroger
E) Walmart, Carrefour, Loblaws

Question 9

A characteristic of retailers which have successfully exploited international growth opportunities is:

A) large staff
B) risk-taking
C) diversification
D) adaptability
E) government connections

Question 10

The greatest retail density and concentration of large retail firms is in:

A) The UK
B) Japan
C) France
D) Canada
E) The USA

Question 11

In what sector are the majority of the largest global retailers involved?

A) Food
B) Auto parts
C) Furniture
D) Apparel
E) Automobiles

Question 12

In terms of sales, the largest retailer in the world is:

A) Walmart
B) Home Depot
C) Sears
D) Costco
E) Carrefour

Question 13

Which of the following is a valid example of costs associated with global sourcing decisions?

A) If, for example, the Indian rupee decreases relative to the Canadian dollar, the cost of private-label merchandise produced in India and imported for sale into Canada will decrease.
B) For American retailers in the U.S.A., inventory turnover is likely to be higher when purchasing from suppliers outside the United States than from domestic suppliers.
C) The legal-political system in foreign countries should never impact the human resource management practices that retailers can use in those countries.
D) If, for example, the Indian rupee increases relative to the Canadian dollar, the cost of private-label merchandise produced in India and imported for sale into Canada will decrease.
E) To reduce the effects of currency fluctuations retailers avoid the use of financial instruments such as options and futures contracts.

Question 14

International expansion is risky because of differences in:

A) culture
B) supply chains
C) languages
D) government regulations
E) all of these

Question 15

What do retailers have to adapt for foreign markets?

A) Store design and layout
B) Work schedules
C) Peak selling seasons
D) Product colours and store designs
E) All of these

Question 16

Which of the following Canadian retailers have been successful in foreign markets?

A) Loblaws
B) Aldo
C) Canadian Tire
D) Shoppers Drug Mart
E) Future Shop

Question 17

Which of the following would discourage retailers from entering foreign markets?

A) Growing numbers of middle-class consumers
B) Trade agreements (e.g. NAFTA)
C) Younger populations
D) Favourable operating costs
E) Aggressive competition

Question 18

Which of the following countries offers the poorest local growth opportunity (based on an aging population) for Canadian retailers wishing to expand?

A) India
B) Mexico
C) Chile
D) China
E) Taiwan

Question 19

How may retailers enter foreign country markets?

A) Strategic alliance
B) Both franchising and joint ventures
C) Joint ventures
D) Franchising
E) All of these

Question 20

What are the main differences between a "global" and a "multinational" strategy?

Question 21

Why is international expansion risky for retailers?

Question 22

What is a geographic difference in retail real estate development in Japan and Europe compared to Canada?

Question 23

Why is it predicted that in the future the North American economy will be much slower growing?

Question 24

Identify and explain four common characteristics of retailers which have succeeded in international markets?

Question 25

What is a globally sustainable competitive advantage?

Question 26

What is an advantage of foreign market direct investment to Canadian retailers? What is a disadvantage of this method?

Question 27

Why do global retailers need "deep pockets"?

Question 28

What foreign market entry methods are available to retailers when expanding?

Question 29

What cautious strategies have allowed Canadian retailers to be successful in the American market?