Which of the following, if True, would most weaken the argument for venturing into the Chinese market?
A) The Chinese government provides subsidies and tax incentives to local manufacturers who export their products.
B) The Chinese breakfast menu is typically made up of steamed dough, noodles, fruits, and eggs.
C) It would take a few months to establish operations in China because of regulatory hurdles.
D) Several international companies have failed in China because of their inability to understand local requirements.
E) Penetrating the Chinese market requires extensive use of local employees.

Question

Quizplus · Accepted Answer

B) Are the breakfast products marketed by Lite Foods a logical fit for the Chinese market? We know that Lite Foods makes oatmeal and corn flakes, but Choice B indicates that these types of cereals are not part of the typical Chinese breakfast. This definitely makes entering the Chinese market riskier for Lite Foods. Choice A isn't relevant to Lite Foods' situation; it only applies to local Chinese manufacturers who export, a description that doesn't currently fit Lite Foods. Choice C describes a very reasonable time period to wait to clear regulatory hurdles. In and of itself, this is not a reason to move away from international investments. Choice D suggests that it is difficult to understand the local Chinese requirements. However, this does not mean that Lite Foods will follow the failures of other companies. In fact, Lite Foods can possibly learn some lessons from these failures. Choice E isn't necessarily a disadvantage. Local employees may be much more productive or less expensive than Lite Foods' American employees.

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