Could going overseas be the answer to the future success of the retail sector and its exchange traded funds (ETFs)?

Marcus Lerox of The Times believes so because markets tends to converge as they develop.  Additionally, it is common practice to take American brands or names and introduce them internationally. Just take a look at fast-food giant McDonald’s (MCD).  This practice is starting to emerge across the pond in Europe as British company Kingfisher is looking to introduce its products in France.

Kingfisher believes that it can buy in bulk, cut costs, cross-pollinate products and introduce its products to a seemingly spend-happy French society. The downside of this is that there will be more common products across their business.  If this practice does take off and others jump on the bandwagon, it could have a positive impact on the iShares MSCI United Kingdom Index (EWU) which is up 7 year-to-date.

Software companies are also being urged to expand their target market group globally as opposed to just concentrating on local markets, states Rosemary Gallagher of Scotland on Sunday.  In fact, the practice is gaining such ground that ScotlandIS, which represents companies involved in information and communication technologies, has set up an export forum to support members that want to expand outside of Scotland.

Regardless of what happens, always watch the trend lines and have a strategy that you stick to when investing.

For more stories on retail, visit our retail and consumer category.

Kevin Grewal contributed to this article.

Tags: Europe, EWU, Global ETFs, Retail, Sector ETFs, Technology, United Kingdom