A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In other words, which of the following would be a determining factor in its global strategy?
A) purchasing power
B) political uncertainty
C) expropriation potential
D) infrastructure
E) sociocultural trends

Question

Quizplus · Accepted Answer

Purchasing power is defined as a comparison of the relative cost of a standard set of goods and services in different countries. Discretionary income is that portion of purchasing power above and beyond income required to meet basic living expenses (i.e., spending money).

A Cosmetics Company That Is Considering Entering the South American