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Coca-Cola In Recent Years, Georgia­based Coca­Cola Attempted to Reenter the Indian

Question 105

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Coca-Cola
In recent years, Georgia­based Coca­Cola attempted to reenter the Indian market. Coke was 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 fastest­growing demand for consumer products in the world. Coke's first attempt to enter the Indian market a decade earlier 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. As a multinational company, Coca-Cola __________ .


A) owns businesses in more than one country
B) is not affected by protectionism
C) is able to avoid trade barriers
D) pays no tariffs
E) is accurately described by all of these

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