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:

Potential GDP

The highest level of economic output that an economy can sustain over the long term without increasing inflation.

Capital Spending

Expenditure by businesses on physical assets like buildings, machinery, and equipment to enhance their capacity or efficiency.

Privatization

The process of turning government enterprises into private enterprises.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.