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 strengthen the argument for venturing into the Chinese market?
A) The affluent Chinese middle class is large and is quick to adopt western lifestyles and product preferences.
B) Growth in the United States cereal market continues to be strong.
C) The Chinese fixed exchange rate regime may change, which could mean a stronger Yuan that would affect Chinese exports.
D) Chinese food preferences are very slow to evolve.
E) China recently signed a free-trade agreement with the Association of Southeast Asian Nations (ASEAN).

Question

Quizplus · Accepted Answer

The fact that the affluent Chinese middle class is large and receptive to Western lifestyles and products suggests there may be a significant market for Lite Foods' breakfast cereals in China.

Lite Foods Is a Producer of Breakfast Cereals Such as Oatmeal