Meghanna is trying to decide whether her company should enter into Turkey or Brazil.She is having trouble determining which is the better market based on available household disposable income (income available after regular household expenditures are paid).Since market prices are different in each country,regular household expenditure costs will differ across markets-but she is not sure by how much.Her boss suggests that she compare the ____ between the two countries,since this would take into account differences in product prices.

Question

Quizplus · Accepted Answer

Purchasing power parity is the best choice because it takes into account differences in product prices between countries, allowing for a more accurate comparison of household disposable income. Per capita income and gross national product do not take into account differences in prices, while accounting practices are not relevant to this comparison.

Meghanna Is Trying to Decide Whether Her Company Should Enter