Question 1
What are the relative advantages and disadvantages of offering the standard American KFC menu in China versus adapting the KFC menu in China to include items more familiar to Chinese consumers?
1. Advantages:
* Offering the standard American KFC menu in China will make it easy for KFC to benefit from economies of scale. KFC can buy their resources from their suppliers in bigger quantities. Furthermore, KFC can produce larger quantities of products they are already producing for the American market. This means that the unit costs will decrease.
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