Which of the Following Assessments of Online Retailing Is Most

question 199

Multiple Choice

Which of the following assessments of online retailing is most accurate?

• A) Online retailing has two major advantages over traditional businesses: simplicity and very low start-up costs.
• B) One of the reasons online retailing firms have been so successful has been their ability to deal with customer complaints and provide personalized services more efficiently than traditional firms.
• C) Traditional retailers seldom find much success when they attempt to incorporate online selling into their businesses.
• D) The line between online retailing and traditional retailing is blurring as traditional retailers go online.

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Definitions:

Purchasing-Power Parity

An economic theory stating that in the absence of transaction costs and with efficient markets, equivalent goods should have the same price when converted into a common currency.

Purchasing-Power Parity

A theory which posits that currencies are in equilibrium in terms of exchange rates when the purchasing power in both countries is identical.

Gold

A yellow precious metal valued for its rarity, durability, and use in jewelry, electronics, and as a form of currency.

Net Exports

The sum total of a country's exports minus its imports, showcasing the balance of trade.