In one of the more creative developments in global trade, Pepsi struck a deal with the Russian government in 1972 to trade their cola syrup for Stolichnaya vodka. Pepsi would send the syrup to Russia for local soft drink bottlers, while Pepsi would receive vodka to distribute in the United States. At the height of the Cold War, residents in then communist Russia could enjoy the same Pepsi as American consumers. Pepsi was able to grow sales through:
A) market development.
B) market penetration.
C) product diversification.
D) product development.

Question

Quizplus · Accepted Answer

Market development involves expanding into new markets or territories. Pepsi's deal to trade cola syrup for vodka with the Russian government allowed it to enter the Russian market, which was a new market for Pepsi at the time.

In One of the More Creative Developments in Global Trade