Carrefour Has Been More Successful in Europe Than Walmart,whereas Walmart

question 98

Multiple Choice

Carrefour has been more successful in Europe than Walmart,whereas Walmart has been more successful in the United States than Carrefour. What is the most likely reason for these results?

• A) first-mover advantages
• B) nationalistic preferences of consumers
• C) lack of knowing how to adapt products
• D) increased exporting fees and transportation costs

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Definitions:

Elastic Demand

A situation in which the demand for a product is highly responsive to changes in its price.

Arbitrage

The practice of profiting from a price difference between two or more markets, transferring a commodity or financial instrument from a lower-priced market to a higher-priced one.

Inelastic Demand

A situation in economics where the change in the price of a good or service has little to no effect on the quantity demanded by consumers.

Total Revenue

The total amount of money a firm receives by selling goods or services.