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The Demand for Coffeehouse Products Such as the Ones Produced

Question 23

Multiple Choice

The demand for coffeehouse products such as the ones produced by Starbucks has been growing exponentially in the Arab region due to a growing young demographic. This has enabled Starbucks to move into the market and achieve positive economic profits. Starbucks' positive economic profits are likely to:


A) Attract even more foreign coffeehouses to open franchises in the Arab region to gain advantage of these positive profits.
B) Cause Starbucks to shutdown in the short -term and exit the market in the long -term.
C) Scare foreign coffeehouses from investing in the Arab region due to Starbucks' powerful market penetration in the region.
D) None of the above.

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