Deck 7: International Retailing Strategy

Question 1

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

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

Answer 1

E

Question 2

A joint venture:

A) 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
B) involves a retail firm investing in and owning a division or subsidiary that builds and operates stores in a foreign country
C) increases the entrant's risks
D) offers the lowest risk and requires the least investment
E) is NONE of these

Answer 2

A

Question 3

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

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

Answer 3

C

Question 4

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

A) To reduce the effects of currency fluctuations retailers avoid the use of finan?cial instruments such as options and futures contracts.
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 merchan?dise produced in India and imported for sale into Canada will decrease.
E) If, for example, the Indian rupee decreases relative to the Canadian dollar, the cost of private-label merchan?dise produced in India and imported for sale into Canada will decrease.

Question 5

Based on 2011 retail sales,the 3 largest retailers in the world are:

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

Question 6

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

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

Question 7

The foreign market entry method with the lowest risk is:

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

Question 8

International expansion is risky because of differences in:

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

Question 9

Bawadi in Dubailand will offer all of the following except:

A) a hotel & shopping strip
B) an entertainment complex
C) a university
D) a convention centre
E) a residential complex

Question 10

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

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

Question 11

What do retailers have to adapt for foreign markets?

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

Question 12

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

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

Question 13

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

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

Question 14

How may retailers enter foreign country markets?

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

Question 15

Using a multinational strategy,retailers will/can:

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

Question 16

Tariffs,also known as ______________,are taxes placed by a government on imports that increase the cost of merchandise imported from international sources.

Question 17

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

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

Question 18

Some core competitive advantages for global retailers include:

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

Question 19

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

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

Question 20

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

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

Question 21

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

Question 22

When a retailer pools its resources with a local retailer in a foreign country,forming a new company in which ownership,control,and profits are shared,it has entered a/an ____________________.

Question 23

Why is international expansion risky for retailers?

Question 24

What is Bawadi supposed to achieve according to Dubai's Strategic Plan 2015?

Question 25

The need for a retailer to change its core strategy to fit global markets is the characteristic of ________________.

Question 26

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

Question 27

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

Question 28

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

Question 29

_____________________ is the world's largest retailer.

Question 30

________________ prompted American big-box retailers and category killers to expand into Canada.

Question 31

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

Question 32

The majority of the largest global retailers are involved in the ____________ sector.

Question 33

Retailers which replicate their standard retail format and centralized management in each new foreign market are using a/an ___________________ strategy.

Question 34

What are some factors which would encourage retailers to enter the international marketplace?

Question 35

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

Question 36

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

Question 37

The market entry strategy which offers the lowest risk as per the text is _______________.

Question 38

Why do global retailers need "deep pockets"?

Question 39

North America's largest shopping mall is ___________________________.

Question 40

What is a globally sustainable competitive advantage?

Question 41

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

Question 42

What are the advantages of a foreign market joint venture to Canadian retailers?
What is a disadvantage of this method?

Question 43

What makes global site location decisions more difficult for market entrants?