Coca-Cola Georgia-based Coca-Cola is reentering the Indian market. Coke is attracted to India's market because India's per capita consumption of carbonated beverages is less than half of Pakistan and about five percent of China's, yet India has the fastest-growing demand for consumer products in the world. Coke's first attempt to enter the Indian market over a decade ago was plagued by gross mismanagement, and the company lost 20 billion Indian rupies. In that first attempt, Coke purchased Thumbs Up, the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke, while maintaining the Thumbs Up distribution strategy. For its return to the market, Coke built five plants, cut costly staff, revamped transport, and reduced the size and weight of bottles in order to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market. Refer to Coca-Cola. In its first attempt to enter the Indian market, Coke engaged in ____.
A)acculturation
B)direct foreign investment
C)internal importing
D)globalization
E)restraint of trade

Question

Quizplus · Accepted Answer

Coke's first attempt involved purchasing Thumbs Up, an India-based company, which is a form of direct foreign investment.

Coca-Cola Georgia-Based Coca-Cola Is Reentering the Indian Market