A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy?
A)Purchasing power
B)Political uncertainty
C)Expropriation potential
D)Infrastructure costs
E)Sociocultural trends

Question

Quizplus · Accepted Answer

Discretionary income is the amount of money people have left over to spend after they have paid for necessary expenses like housing, food, and bills. Thus, purchasing power is a determining factor in the cosmetics company's global strategy as it directly affects whether or not consumers within the South American market will be able to afford the company's products. Political uncertainty, expropriation potential, infrastructure costs, and sociocultural trends may also be important factors to consider, but they are not as directly related to the company's ability to sell its products in the market.

A Cosmetics Company That Is Considering Entering the South American