Consumers Globally Who Are Considered to Be at the Bottom

question 14

Multiple Choice

Consumers globally who are considered to be at the bottom of the pyramid (BOP) have been generally overlooked by international firms because:

• A)They have high mortality rates due to increased susceptibility to disease
• B)They often have no fixed abode and are difficult to reach
• C)They live in regions characterised by political stability
• D)All of the above
• E)Options B and C only

---

Definitions:

EBIT

Earnings Before Interest and Taxes, a financial metric that calculates a firm’s profit excluding interest and income tax expenses.

Variable Cost

A cost that varies directly with the level of production or volume of output, as opposed to fixed costs, which remain constant regardless of activity level.

Direct Labor

The wages of employees who are directly involved in the production of goods or services.

Direct Materials

Raw materials that are used directly in the manufacturing of a product and can be directly attributed to the product.