The Hungry Cow, a chain of American fast-food restaurants, has recently experienced a great deal of domestic growth. Now its managers are trying to decide whether to expand the company into China to tap into a brand-new market. Which of the following would indicate that this is a good decision?
A. Chinese companies tend not to pursue the franchise option when attempting to expand into other countries.
B. Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries.
C. The Hungry Cow's research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets.
D. The Big Bite Burger has a higher selling price than other items on The Hungry Cow's menu, but it is not the most profitable item because of the cost of its ingredients.
E. Changes in exchange rates can affect the value of sales made in different countries
Answer: C