1. Factories in many developing nations have lower cost structures, but that is often attributable to fewer benefits and lower wages for workers. What are the ethical trade-offs for retailers and shoppers when merchandise is sourced from countries in which labor practices fall short of standards Americans deem acceptable? Do shoppers really care about workers halfway across the globe, or are they more concerned about how many dollars are flowing out of their own pockets?

2. The world is our marketplace. AFW employs global sourcing, uses many negotiating tactics, and shifts channel tasks to keep its costs as low as possible. Enumerate the tactics AFW uses to keep its prices low. What other strategies and tactics could a furniture retailer use to hold the line on retail prices?

3. What criteria should AFW use when deciding whether to see a new vendor? How might it apply some of its best practices with its biggest vendors to new, smaller vendors? What strategies or innovations could it employ to stretch the productivity of its buying staff?

Synopsis: Show how retailers can reflect and respond to values expressed by their consumer base through the merchandise they buy. Enumerate ways that the buying process can be modified to trim costs without compromising quality. Describe ways global sourcing can be accomplished cost effectively. Discuss how cost structures and manufacturing processes in foreign countries may be different than in the U.S