Lite Foods Is a Producer of Breakfast Cereals Such as Oatmeal

question 215

Multiple Choice

Lite Foods is a producer of breakfast cereals such as oatmeal and cornflakes, and its products can be found in nearly all supermarkets across Canada. Lite Foods now has its sights set on international shores, specifically the large Chinese consumer market. Company executives are currently debating the optimal route for the firm to enter the market. 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.

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Definitions:

Fixed Cost

Expenses that do not change with varying levels of production.

Negative Reinforcement

A behavioral modification technique where a response increases because a negative condition is removed or avoided.

Tardiness

The act of being late or delayed beyond the scheduled or expected time.

Intermittent Reinforcement

The giving of rewards for behaviour only periodically.