Part 2 Case Studies

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Lindsey Bunkleman Week 9 Assignment Case Studies (2.1, 2.2, 2.3, 2.4 and 2.5) Case Study 2.1 (pg. 270-271, #1-3) 1. Why do Canada and the United States have the largest bilateral trading relationship in the world? Canada and the US have one of the world’s largest investment relationships. Both countries are open to trade. Approximately 73% of Canada’s exports go to the US, which is the United States’ largest exporter. Canadian products command approximately 20% of the US import market share. 2. Why do Canadian products have such a large market share in the United States? The United States is Canada’s largest agricultural export market, taking well over half of all Canadian food exports. Canada is the largest market for the United States’ agricultural goods, with nearly 20% of American food exports going to Canada. 3. While 98% of Canada-US trade flows smoothly, trade disputes only affect the remaining 2%. Some argue that the Canadians have over-reacted in this case. What do you think? These issues should be managed through the World Trade Organization (WTO) or NAFTA dispute resolution procedures. This way there is a neutral party involved who makes the best decision for world trade or for all parties involved. Case Study 2.2 (pg. 272-273, #1-5) 1. Why is the Indian retail industry so inviting? India has the world’s highest density of retail outlets. It has more than 15 million outlets, compared with 900,000 in the United States, whose market, by revenue, is 13 times bigger. 2. From a resource-based view, what are the unique resources and capabilities that multinational retailers such as Wal-Mart can bring to India? Based on the resource-based view Wal-Mart’s core competencies are suitable which include; a supply chain with integrated technologies is a competitive parity, an ability to generate large sales volume to enjoy low

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