Question

Sri Lanka is one of the major tea producing nations in the world. A substantial portion of the country's annual tea production gets exported to various countries, including the United Arab Emirates, Russia, and other countries in the Middle East. Given the success in the these countries, Ski Lanka decided to foray into the Asian market. Research evidence indicated that people in Myanmar are major consumers of tea and that there is a high demand for tea in that country. This convinced industry experts in Sri Lanka that exporting Myanmar was a good idea.

Even though Sri Lankan tea was priced competitively, sales in Myanmar turned out to be far lower than expected. Which of the following, if true could explain this outcome?

A. Myanmar exported a substantial amount of it annual tea production that year.
B. The Myanmar government hiked the minimum wage for labor.
C. people in Myanmar are willing to pay more for their domestic tea brands than for foreign brands.
D. the tea exported from Sri Lanka is of the highest quality.
E. Sri Lankan tea exports to other Asian countries like India and China have also not been very successful.

Answer 1

The people in Myanmar are willing to pay more for their domestic brand than for the foreign brands.

Answer: Option C.

Step-by-step explanation:

In today's date, there is a lot of variety available for the consumers in the market for a particular good. There is a lot of competition for the consumer goods and the services. Because of this there are possibilities of export and import in the countries.

But this did not turn out to be true for Sri Lankan tea brand in Myanmar market even if it wad fairly priced. The reason for this is that the people in Myanmar were ready to pay for their local tea brands and not foreign brands.