Which of the following explanations suggests the Greek management team might be increasingly cautious about adding another production facility in a foreign market? A) The company did not make a greenfield investment. B) Governmental regulations are Intrinsically unpredictable. C) The development costs are lowered. D) The company will have to close the plant at the beginning of the new year. E) The production costs are lowered
A Greek yogurt maker owns and operates a production facility in Switzerland. Within the next six months, the Swiss government has stipulated that all local food producers must list the genetically modified ingredients (GMO) contained in the product on its packaging label. GMO foods or, as critics commonly call them, "Franken-foods," in honor of Frankenstein, use genetic material that have been altered using genetic engineering techniques in making the food.
Companies are often reluctant to post this information, fearful that it might result in people choosing not to use their products. Although labeling of GMO products in the marketplace is required in 64 countries, many others, including Greece, do not impose this regulation.
Interestingly, reporting this information on the label is not required in the United States and no distinction between marketing GMO and non-GMO foods are presently recognized by the United States’ Food and Drug Administration.
Dealing with growing demand for Greek style yogurt spurred management to identify another country to locate its next production facility.
Which of the following explanations suggests the Greek management team might be increasingly cautious about adding another production facility in a foreign market?
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