Cultural Differences,especially Those Involving Language,can Add to Research Costs in Foreign

question 137

Multiple Choice

Cultural differences,especially those involving language,can add to research costs in foreign markets and can increase the ________.

• A)foreign trade
• B)risks of error
• C)response rate
• D)need for a larger sample
• E)reliance on primary data

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Definitions:

Income Elasticity

Measures how the quantity demanded of a good changes in response to a change in consumers' income.

Normal Good

A type of good for which demand increases as the income of consumers increases, and decreases when consumer income decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite of a normal good.

Normal Good

A good for which demand increases as the income of the consumer increases.