Which of the following, if true, strengthens the argument for competin

QUESTION

Which of the following, if true, strengthens the argument for competing in the Chinese market?

A) Changes in exchange rates can affect the value of sales made in different countries.
B) Even global brands typically choose to tailor their offerings according to the tastes of consumers in different countries.
C) The Big Bite Burger has a higher selling price than other items on The Hungry Cow’s menu, but it is not the most profitable item because of the cost of its ingredients.
D) The Hungry Cow’s research indicates that reaching new customers in domestic markets will be more expensive than doing so in emerging markets.
E) Chinese companies tend not to pursue the franchise option when attempting to expand into other countries.

ANSWER

Answer: D
Explanation: D) Expanding into the Chinese market is a complicated decision involving many factors. One of those is the cost of reaching new customers. If Choice D is true, then the cost of reaching customers in emerging markets (China is one of those markets) is relatively low, and so Choice D strengthens the argument. Choice A suggests that expanding would be risky, which doesn’t help the argument. Choice B suggests that The Hungry Cow would have to make some changes in order to compete in China, which makes entering China sound harder. Choice C tells us nothing about China or the opportunities there. Choice E refers to the wrong subject. The issue here is expansion into China.