It may be more costly to do business in a relatively undeveloped economy because of the:
A) unskilled and uneducated labour force.
B) lack of infrastructure and supporting businesses.
C) laws and policies placed on international businesses.
D) distance between head office and operations.

Question

Quizplus · Accepted Answer

The lack of infrastructure and supporting businesses can make it more costly to do business in a relatively undeveloped economy. For example, if there is a lack of reliable transportation, it can be difficult to get goods to market. If there is a lack of access to financing, it can be difficult to expand operations.

It May Be More Costly to Do Business in a Relatively