International E-Commerce Holds Great Promise for Growth for New and Established

question 17

Multiple Choice

International e-commerce holds great promise for growth for new and established businesses. What is the most logical reason why this may be so?

• A) Many people in developing countries cannot get what they want in their local markets, so buy online.
• B) Prosperity is rising all over the world, so potential users have more wealth with which to purchase goods.
• C) Most people speak English.
• D) Local distribution is easy to arrange with trusted partners.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit changes as production volume increases.

Maximum Capacity

The highest level of output or activity that a facility, system, or machine can achieve under normal conditions.

Capital

Economic resources that are used in the production of goods and services, including buildings, machinery, equipment, and financial assets.

User Cost

The cost of using a durable good over time, considering depreciation and the opportunity cost of not investing funds elsewhere.