Because Emerging Markets Have Underdeveloped Infrastructure

question 24

Multiple Choice

Because emerging markets have underdeveloped infrastructure:

• A)they cannot afford the best products from MNCs.
• B)they do not have to overcome legacy technology and can leapfrog it.
• C)they are more eager to adopt new products.
• D)R&D efforts are centered in these markets to generate new ideas.
• E)distribution channels will be easier to set up.

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Definitions:

Direct Tax

Tax on a particular person. Most important are federal personal income tax and payroll (Social Security) tax.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like gasoline, alcohol, and tobacco, aimed at reducing their consumption or raising revenue.

Market Transactions

Actions that involve the exchange of goods or services for money, conducted within a marketplace.

GDP

Known as Gross Domestic Product, it is the sum of the market or money value of all produced finished goods and services within the territorial limits of a country in a given time span.