While economic growth rates in stable economies may be high compared with emerging-market economies like BRIC, their high per-capita-income levels translate to poor levels of consumption that could prove to be an unstable source of revenue and profits for MNEs wanting to enter these markets.

Question

Quizplus · Accepted Answer

The statement presents a contradictory statement. Economic growth rates in stable economies may not necessarily be high compared to emerging-market economies like BRIC. Moreover, high per-capita-income levels in stable economies usually translate to high levels of consumption, which can be a stable source of revenue and profits for MNEs wanting to enter these markets.

While Economic Growth Rates in Stable Economies May Be High