Scenario 9.2 Use the Following to Answer the Questions

question 84

Multiple Choice

Scenario 9.2
Use the following to answer the questions.
KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu-items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries-to offer the customer passing by a preliminary view of their product.
Refer to Scenario 9.2. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe." If KFC were to resort to paying this bribe in China saying that "it's different doing business there," this would be an example of

• A) a licensing arrangement.
• B) the self-reference criterion.
• C) cultural relativism.
• D) balance of trade issues.
• E) exchange controls.

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Definitions:

Ethically

In a manner that is morally right or acceptable according to societal or professional standards.

Environmentally Friendly

Practices or products that do not harm the environment.

Low Cost Strategy

A business approach aimed at offering products or services at the lowest possible price point to gain competitive advantage and attract price-sensitive customers.

Flexibility

The ability of a system, organization, or individual to adapt effectively to changes, challenges, or varied demands.