Two factors help determine the growth potential of foreign markets. They are foreign competition and:
A) communications and transportation systems
B) purchasing power
C) political stability
D) creative differences
E) product diffusion rate

Question

Quizplus · Accepted Answer

Purchasing power is a crucial factor in determining the growth potential of foreign markets. It refers to the ability of the people in the foreign market to buy goods and services. If the purchasing power of a foreign market is high, it implies that there is potential for growth because consumers would be able to afford products and services sold by foreign companies. On the other hand, if the purchasing power is low, foreign companies might struggle to penetrate the market.

Two Factors Help Determine the Growth Potential of Foreign Markets