Sears Department Store Has Over 900 Stores in the U

question 16

Multiple Choice

Sears Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Sears has been particularly successful in Mexico, and the firm's executives believe Sears should expand into other Latin American countries. As a result, plans are underway for the construction of a new Sears store in Managua, Nicaragua. Construction should be complete within three months, so staff selection needs to begin soon. Sears' executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following questions is LEAST relevant to the decision to fill management positions in Sears' Nicaragua store with parent-country nationals?

• A) What are the relocation and compensation expenses associated with using expatriates in Nicaragua?
• B) What form of sales promotions would be used by Sears in Nicaragua to attract new customers?
• C) What level of control does Sears' headquarters need to have over the Sears store in Nicaragua?
• D) How important is it for the Sears manager in Nicaragua to be familiar with local culture?

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Definitions:

Consideration

The value (such as money, a promise, or a service) that is given by both parties in a contract making the agreement legally binding.

Personal Property

Movable assets owned by an individual or entity, as opposed to real estate or land.

Article 2A

A section within the Uniform Commercial Code that covers the law of leases of personal property.

Good Faith

A sincere intention to deal fairly with others, without taking advantage of them.