Please read the case study 6.2 and answer the following questions:

What is the strategy of the Shimamura company?

Can you name a US-based or Canadian retailer who uses a similar strategy?

but den later after they have cither more experience or the country becomes less nisky, they eter the country with their own stores. Expatriation of profits means that the franchiser can take the money out of the coun7. You can see where individual countries such as the United States would be interested i bow profits are reported and to which country. It has tax and investment implications. Chin is a country where the commercial interest and activity have developed more nidly than is laws. Earlier in the book, we discussed the rule of law, meaning that each cantry has codified its laws so that all market participants know what is legal and what is ilegl. Before laws are written down, there is much greater risk to companies doing businces b the country. The reason businesses franchise internationally seems to be different from the gencral reasons for entering a franchising arrangement. Look how many decades it took McDonalds to expand from the United States to Canada and then from there. The prinary teson companies give for not expanding intermationally is having sufficient opportunities ithene. Experience and size are important factors that help deternine whecher a company As we will see in the next section, a theory of international franchising depends on will parses international franchising.' thaimining both managerial abilities and risk management. Resource-Based Theory of International Franchising to an article on intemational franchising, Fhadmoe-Lindquist identifis a cypology for Aeconding to this theory, know-how-based resources or routines for operating provide teportance of not just posvessing rewources, bot of continual organization learning. Gromth