Friendly Stores, a U$.$S$.$ retailer, has recognized numerous opportunities to expand in foreign countries and has assessed many foreign markets, including Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. It has opened new stores in Europe, Asia, and Latin America. In each case, the firm was aware that it did not have sufficient understanding of the culture of each country that it had targeted. Consequently, it engaged in joint ventures with local partners who knew the preferences of the local customers.

What comparative advantage does not Friendly Stores have when establishing a store in a foreign country, relative to an independent variety store?

Friendly Stores has name recognition, which could result in customer trust, and therefore a stronger demand for its products.

Friendly Stores has its own standard of business conduct that it applies in each country.

Friendly Stores has marketing expertise that it applies to each store.

Friendly Stores has economies of scale, because it could buy its products in bulk and distribute the products to the stores that need those products.