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This case study analyzes Wal-Mart’s market entry and expansion in the Mexican market. Today’s Wal-Mart has become the largest retailer in Mexico. The case discusses all the current issues of this debate within the perspectives of growing the international firm and other internationalization issues. The case also evaluates the global retailing industry and its changing competition. Within the current circumstances, it is expected that Wal-Mart will continue to grow in Mexico and the NAFTA region. On the other hand Wal-Mart may face heightened competition and will be challenged by Mexican and other international retailers. The significance of this work lies in its timeliness and relevance to the ongoing debate of NAFTA-related boom and internationalization in the retailing industry.

This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent’s size, the subsidiary’s age, and a complicated distribution system influence a subsidiary’s performance. There was little significant change in these determinants over a 20-year period. However, for subsidiaries that survived over the observation period of this study, some determinants changed. We also found that by forming joint ventures with Japanese firms, foreign firms can overcome the obstacle of distribution and circumvent the disadvantage of inexperience. Moreover, the mitigating effects of joint ventures vary, depending on the type of Japanese partner.

In recent years the production and consumption of food have become both more transnational and diversified. Concurrent with these transformations has been the increasing use of standards to differentiate both agricultural products and processes. Historically standards were understood as “natural market lubricants,” but today they are increasingly viewed as tools for competitive advantage. As the use of standards has proliferated, the need to ensure compliance has also increased. Third-party certification (TPC) is one way to ensure compliance and it is becoming increasingly prominent in the global agrifood system. This chapter examines the complex effects that the widespread implementation of standards and TPC is having on the global agrifood system. What is occurring is not simple standardization and differentiation, but rather differentiated standardization and standardized differentiation. In the first instance, whereas we have standardization, it is differentiated, as multiple options remain. For example, while TPC for food safety and quality is becoming increasingly common, what such certification means continues to have considerable diversity. In the latter case, different kinds of agricultural practices are becoming standardized (i.e., organic). That is, difference (e.g., alternative agriculture) is becoming standardized, so that it is increasingly becoming the same globally. In concluding, we argue that standardization and differentiation are both taking place simultaneously in the global agrifood system, and that analyses of the globalization of food and agriculture must begin to recognize this.

Retail, by definition, used to be an industry focused on local markets and aiming to distribute goods to consumers in a narrow geographical area. In developed market economies, the internationalization of retail operations started with global sourcing, while in Eastern Europe the process of retail internationalization intensified after the fall of communism in late 1980s and early 1990s. Although there are plenty of papers discussing the conceptual framework of retail internationalization, publications analyzing the present level of internationalization and the current status of specific geographic markets are scarce. Therefore, this chapter will analyze and compare the Croatian and Polish markets in order to explain the paths and drivers of retail internationalization in postcommunist economies.

Research has focused on the Polish and Croatian markets. The first and second part of the chapter explain retail internationalization per se on the basis of existing relevant literature, as well as elaborate on the process of retail internationalization in the postcommunist economies of Poland and Croatia. The main part of the chapter presents the results of a comparative study. This comparative study has been based on secondary data available in official statistical publications of Poland, Croatia, and European Union. As the source of information on large retailers, secondary data has been used as well. Our research analyzes key trends and calculates and presents key indicators showing the importance of retail in national economies.

Both Croatia and Poland are considered attractive host markets for the largest global retailers. Dynamics and intensity of retail internationalization have been different, but the process of retail internationalization is currently intensified in both countries. Retail internationalization is changing the scope of domestic market conditions. Several indicators and effects are observed in this chapter: growth of larger formats within the retail structure, growth in the number of employees per outlet, and growth of the share of trade in GDP creation.

The chapter explains the process of retail internationalization and the level of retail internationalization reached in Croatia and Poland. International retailers from different countries entered the Polish and Croatian markets driven by opportunities offered by these non-saturated markets. The process of internationalization, which is currently intensified, is analyzed in this chapter. Poland and Croatia are markets and countries with similar socioeconomic development. Therefore, this chapter contributes to a better understanding of retail internationalization and its effects on transitional, postcommunist economies.

This chapter combines a global value chain methodology with the case of the development of the farmed Atlantic salmon industry in Chile to inform discussions regarding the globalization of economy and society. The research documents the shifting structure of the value chain from the north to the south as Chile replaced northern Europe as the locus of production and the major world supplier of farmed Atlantic salmon. Farmed salmon was supported by the Chilean state as part of its export-oriented industrialization model that attracted foreign direct investment (FDI) from northern TNCs. Chile's low costs of production combined with growing environmental problems in the north and global retailers' demand for large quantities of low-cost product resulted in the restructuring of the farmed Atlantic-salmon value chain as northern capital sourced the south as a lucrative production platform to service northern consumers. A detailed investigation of the rise in dominance of the firm Marine Harvest is provided to illustrate the process of industry concentration the Chilean farmed-salmon industry. This model has generated a legitimation crisis related to environmental degradation and labor abuses resulting in social movement organization both nationally and internationally. The chapter concludes with a discussion of the implications of the Wal-Mart Effect on the agrifood industry in particular and in the farmed-salmon industry in particular.

This chapter aims to examine whether the intransigence of consumers is leading to exploitative conditions in developing countries. It focuses on Bangladesh where the situation is dire for workers in the apparel industry, as they work tirelessly to supply the needs of consumers in the developed world.

The chapter adopts an analytical approach to identify and analyse the key issues within the apparel sector. It assesses the issues on the basis of the ethical trade practices and the duty care theory in determining the roles, if any, that retailers and consumers play in the generation of these mishaps. It uses secondary sources obtained mainly through the media and the literature to review the current debates within the sector.

The chapter presents evidence that shows that the rationale for engaging with and supporting workers in developing countries are important strategic reasons for undertaking global investments. The chapter found that problems within the apparel business could be rectified if people at all stages of the supply chain take responsibility for their actions and inactions. This is particularly relevant in the context of weak states, where negative externalities such as human rights abuses, poor working conditions and low pay levels are often found.

The chapter makes a case for compelling firms to ensure the welfare of workers from those countries they source from. In particular, by focusing on Bangladesh, the chapter has attempted to link the national and local context to global forces in which ethical concerns are seen to have become susceptible to pressures of economic considerations. Such a situation underscores the need to explore the tensions that exist between global governance regimes and national regulations, and how they are likely to become more critical during times of economic development. More specifically, the chapter also believes further research can be done to assess how we should discharge our responsibilities to others within the supply chain of the apparel industry.

The chapter contributes to a discussion that has been of considerable concern to many international retailers, consumers and contractors in the garment industry of late. Its importance lies in the fact that it examines critically the competing claims as to who should take the blame for mishaps in the garment industry. It brings to the fore the ethical obligations that stakeholders have and suggests avenues for a series of engagements that can drive the cause for achieving just and compassionate care relations in the broadest sense within the business environment.

This paper aims at enriching the literature on international business (IB) studies to include insights from Global Value Chain (GVC) analysis to better explain how MNCs can orchestrate a global network organization. A first important contribution of the GVC literature is that it shifts the focus from single firms to their value chains, providing instruments to study how activities are split and organized among different firms at the industry level, and how MNCs can implement different governing mechanisms within a network-based setting. The GVC literature also highlights that retailers (as global buyers) often act as ‘lead firms’ in shaping the trajectories of global industries, while IB studies have so far focused predominantly on manufacturing firms. A fine-grained analysis of alternative forms of governance characterizing value chains can offer additional elements in explaining how MNCs can manage their network relationships in a global scenario. Finally, through their focus on upgrading, GVC studies suggest that knowledge flows and innovation dynamics taking place within value chains are as important as those taking place within the MNC’s organizational border. We conclude by arguing that these insights can help the IB literature to examine the challenges and opportunities MNCs face in engaging with suppliers and to explain the dynamic evolution of orchestrating global activities at the global level.

The UK food retailing sector has undergone a radical transformation over the last 70 or so years. It has become a sector dominated by very large businesses with considerable power over both the upstream and downstream supply chain. The scale and power of those leading retailers has attracted considerable academic focus and political attention. In the first two decades of the twenty-first century, global concern has emerged via a number of grand challenges including sustainability. Retailers have increasingly sought to address issues of corporate social responsibility (CSR) and sustainability, both to stave off criticism and for reasons of operational efficiency. The scale of the UK’s leading food retailers thus becomes a two-edged sword; should these retailers be co-opted in the fight for global sustainability or radically challenged as the cause of many of the problems? This chapter reviews the changing roles of food retailers, their steps in CSR and then poses the question as the future role of retailers in this changing environmental landscape.

We are confident that the Wal-Mart concept is “exportable.”…If Wal-Mart had been content to be just an Arkansas retailer in the early days, we probably would not be where we are today. State borders were not barriers, and people and ideas moved freely from one area to another…We believe the successful retailers of the future will be those that bring the best of each nation to today's consumer. We call it “global learning.” We are committed to being a successful global retailer and we believe the attributes that made us successful in the United States will also lead to success internationally.– David D. Glass, President and CEO, Wal-Mart Stores, Inc. (Govindarajan & Gupta, 2001)