i'm sorry, my bad, i focus on your layout before 
selection.html
-------------------------------------------------
_______________       _______       
| select a country |      | submit |
---------------------------      -------------

_______________       _______       
| select a brand    |      | submit |
---------------------------      -------------

*See all shops*

for learning how sqlform manage it, i think there is on the web2py gluon 
modules sqlhtml.py

for drop down form field, for start from simple, i think it created 
automatically if you set the field type as reference or list:reference 
(it's on models side). or if you want to create it in controllers side, 
please use the validators (IS_IN_DB(), IS_IN_SET())

please read the book that related with :
models : with field type reference and list:reference
and validators like : IS_IN_DB() and IS_IN_SET()

best regards,
stifan

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