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XYZ firm, the leading producer of leather goods in its country is planning to expand its business. Industry experts identify Asia as a potential target
XYZ firm, the leading producer of leather goods in its country is planning to expand its business. Industry experts identify Asia as a potential target market. They report that substitute products, particularly in India, are highly priced. Darren, the operational head, feels that exporting their product to India is a good idea. According to him, their price advantage alone will ensure good sales. However, his colleague, Mark, who is also the head of product development, feels that Darren is too optimistic, and that this venture may not tum out to be as profitable as Darren expects it to be
Which of the following, if true, will strengthen Darren's point of view?
A Indian producers do not have access to the technology that XYZ uses for producing leather goods.
B Consumers in India are becoming increasingly critical of manufacturing processes that involve animal cruelty.
C India is an emerging market and some of the foreign brands that have sold electronics in India have been doing extremely well.
D Foreign trade is heavily regulated by the Indian government.
E Indian consumers are loyal to their national brands.
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