U$.$S$.$ fast$-$food chains often alter their menus or business practices to accommodate local tastes and customs when operating in other countries. One reason for this may be that U$.$S$.$ companies do not want to go against cultural norms or offend their customers when operating overseas.

To a certain extent, U$.$S$.$ companies wish to fit in to the cultures where they are selling their products. Given this, consider why they do not simply offer the exact same menu items offered by local competitors in each market that they serve.

a$.$ Some degree of product differentiation is necessary to

gain market share.

open a business in a foreign country.

avoid a Prisoner's Dilemma.

anticipate the actions of competing firms.

b$.$ From the perspective of the consumer, product differentiation has