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Lite Foods Is a Producer of Breakfast Cereals Such as Oatmeal

Question 120

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 most weaken the argument for venturing into the Chinese market?


A) The Chinese government provides subsidies and tax incentives to local manufacturers who export their products.
B) The Chinese breakfast menu is typically made up of steamed dough, noodles, fruits, and eggs.
C) It would take a few months to establish operations in China because of regulatory hurdles.
D) Several international companies have failed in China because of their inability to understand local requirements.
E) Penetrating the Chinese market requires extensive use of local employees.

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