China takes on Starbucks, biting a hand that feeds it, analysts say
1. Starbucks asserts that higher costs in China are due to the fact that “Chinese customers, unlike their American counterparts, often consume Starbucks food and beverages in the stores.” As a result, owners are forced to spend more on location and design. Is this a viable excuse for inflation? What other forces may be influencing the increased cost of purchasing a latte in Beijing?
2. The article contends that the taxes levied against foreign business in China are hampering the transition from a production-based economy to a more consumer-centric model. Do the taxes on international businesses restrict growth, or level the playing field, so that local Chinese-ownedcompanies can begin to thrive as the economy shifts towards a more westernized model?







