Per-capita GDP converted at market exchange rates paints an inaccurate picture of the market potential of an emerging market because ________.
A) it tends to over-emphasize the role of pricing in driving growth in emerging markets
B) it overlooks the substantial price differences between advanced economies and emerging markets
C) prices are usually higher for most products and services in emerging markets
D) emerging markets do not support inward FDI

Question

Quizplus · Accepted Answer

Per-capita GDP converted at market exchange rates does not account for the substantial price differences between advanced economies and emerging markets. This can lead to an inaccurate picture of the market potential of emerging markets, as it may overstate the purchasing power of consumers in those markets.

Per-Capita GDP Converted at Market Exchange Rates Paints an Inaccurate