Ryan Motors’ director of marketing favors the first option, marketing

QUESTION

Ryan Motors’ director of marketing favors the first option, marketing the company’s products in Chile. Which of the following, if true, strengthens his case for the company selling in Chile?

A) Chile is thousands of miles from the United States.
B) Chile’s economy has grown steadily for the last several years.
C) Chile has a much lower per-capita income than many other emerging markets.
D) Chile’s government has recently begun to subsidize a Chilean-based automaker.
E) The United States does not have a free-trade agreement with Chile.

ANSWER

Answer: B
Explanation: B) Steady growth is a good indicator that Chile’s economy would support a market for Ryan’s products. Choice A is not relevant to whether Ryan would be successful selling its products in the Chilean market—many companies export cars the same or even greater distances. Choice C weakens the case that Ryan should sell in Chile because it indicates that the buying power of the population is relatively low. Choice D indicates that Chile’s government hopes the country can establish its own industry, which suggests that foreign-based companies such as Ryan will face tariffs or other indications of a lukewarm reception from the Chilean government. Choice E weakens the case that Ryan should sell its products in Chile because it means that tariffs or other taxes may be imposed on Ryan’s products in Chile.