Which of the following, if True, would weaken the argument for exporting the company's products to China?
A) Lite Foods will have to make significant investments if it decides to enter a joint venture in China.
B) Lite Foods would have to hire sales personnel from the host country if it opts for direct export.
C) Lite Foods is a risk-averse organization.
D) Lite Foods lacks Chinese market expertise and has not found reliable intermediaries with expertise in the market.
E) Lite Foods will export its products as is, as more and more Chinese consumers are adopting breakfast cereals.

Question

Quizplus · Accepted Answer

D) Though exporting involves less risk than other methods of market entry, an exporting company needs to have some knowledge of the market or to work with a partner who knows the market. Choice D suggests that Lite Foods knows little about the Chinese market and hasn't found a knowledgeable partner the company can trust. As such, Choice D dampens the attractiveness of exporting. Choice A is not relevant to exporting. Choice B merely states a fact about exporting. It neither strengthens nor weakens the case for exporting. Choice C actually supports market entry through exporting, as exporting presents the lowest level of risk for a company. Choice E does nothing to weaken the argument. Rather, it supports a push to enter the Chinese market.

Which of the Following, If True, Would Weaken the Argument