Some Critics Complain That MNEs Introduce and Promote Superfluous Products

question 45

Multiple Choice

Some critics complain that MNEs introduce and promote superfluous products in developing countries, causing consumers there to buy these products rather than things they need for their health.People answering this criticism have contended that ________.

• A)consumers don't buy things because of promotion
• B)the amount spent on so-called superfluous products is insignificant
• C)it is impossible to draw a line between people who can afford and people who can't afford these products
• D)these products serve to motivate people in developing countries to work harder

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Definitions:

Price Level

A measure of the average prices of goods and services throughout the economy, indicating the cost of living or inflation rate.

Net Wealth

The total value of all financial and non-financial assets owned by an individual, company, or country, minus any debts.

Interest Rates

The cost of borrowing or the reward for saving, typically expressed as a percentage of the amount loaned or saved over a specified period.

Consumption

denotes the act of using goods and services for personal or collective needs, often a major component of GDP.