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 best way for the firm to enter the market. Which of the following,if true,would strengthen the argument for exporting the company's products to China?
A)Lite Foods has a large budget set aside for foreign direct investments.
B)Lite Foods wants to have strict control over its international operations.
C)Lite Foods must modify its product line to suit Chinese tastes and preferences.
D)Lite Foods' products do not have a "healthy" reputation in the United States.
E)Lite Foods has significant excess capacity that results in production overruns.

Question

Quizplus · Accepted Answer

Lite Foods having significant excess capacity suggests that the company can produce more than it currently sells, making exporting to China a viable option to utilize this excess production capacity.

Lite Foods Is a Producer of Breakfast Cereals Such as Oatmeal