When Shop Smart opened its first super market in China it was unable t

QUESTION

When Shop Smart opened its first super market in China it was unable to generate any sales.

After conducting a research, it was understood that the local sales personnel found it difficult to communicate with the American store managers. In addition, Chinese consumers found it difficult to shop in the American way. Shop Smart’s failure in China can be attributed to the lack of:
A. cross-cultural literacy.

B. class consciousness.

C. a first-mover advantage.

D. Confucian dynamism.

E. ethnocentrism.

ANSWER

A
Cross-cultural literacy is an understanding of how cultural differences across and within nations can affect the way business is practiced. The American business should have created a shopping experience Chinese customers were comfortable with and valued. Hiring local sales personnel is not the only solution.