When Ikea,the Swedish Home Furnishings Retailer,first Entered the Japanese Market,it

question 38

Multiple Choice

When Ikea,the Swedish home furnishings retailer,first entered the Japanese market,it failed.It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes.The _____ environment had the greatest influence on Ikea's first failure in Japan.

• A) demographic
• B) economic
• C) cultural
• D) political
• E) technological

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Definitions:

Economic Order Quantity

A formula designed to determine the optimal order size to minimize the costs of holding and ordering inventory.

Net Present Value

The calculation of the present value of an investment's expected cash inflows minus the costs.

Cash Sales Policy

A policy adopted by businesses that requires all purchases to be paid for in cash at the time of sale.

Net 30 Credit Policy

A credit term indicating that payment is due in full 30 days after goods are delivered or services are performed.