“…In general, firms that enter international markets must inevitably adapt some of their domestic practices to the sociocultural, legal, political, and economic conditions and different business practices of these economies or societies (Dicken 2003). However, the degree of adaptation varies considerably, depending not the least on the capacity of the host government to exercise its authority on regulatory Burt, Dawson, and Sparks 2003;Dawson 1994Dawson , 2007Doherty 1999;Goldman 1981Goldman , 2000Goldman , 2001Palmer 2005Palmer , 2006Palmer andQuinn 2005, 2007 Gamble 2006aGamble , 2006bMiller 2005Miller , 2006 Economics/policy studies • Externalities from retail FDI • Reregulation in response to retail TNC-driven changes in retail structures and supply systems • National business systems and varieties of capitalism practices (Storper 1997;Christopherson 2007). The extent of adaptation also depends on the organizational capabilities and culture of the firm, which can promote either a more globally integrated or a locally responsive strategy (Prahalad and Doz 1999).…”