When Shop Smart Opened Its First Super Market in China

question 95

Multiple Choice

When Shop Smart opened its first super market in China it was unable to generate any sales. After conducting a research, it was understood that the local sales personnel found it difficult to communicate with the American store managers. In addition, Chinese consumers found it difficult to shop in the American way. Shop Smart's failure in China can be attributed to the lack of:

• A)cross-cultural literacy.
• B)class consciousness.
• C)a first-mover advantage.
• D)Confucian dynamism.
• E)ethnocentrism.

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Definitions:

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, proposing to reflect the average citizen's financial discomfort.

Nominal Interest Rate

The rate of interest before adjusting for inflation, representing the face value of interest payments.

Inflation

The speed at which the overall price level for goods and services increases, causing a decline in the value of money.

Deflation

A decrease in the general price level of goods and services in an economy over a period of time.