ACoskun Samli Had Developed a Useful Approach to Global Market

question 61

Multiple Choice

A.Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom.An example of unconventional wisdom is:

• A) since per capita income in India is about $1,420, assuming that all Indians have low incomes.
• B) assuming that consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not.
• C) assuming that there is a presence of a higher-income middle-class segment in India.
• D) assuming that the potential Indian customer base for a McDonald's is larger than the size of entire developed countries.
• E) assuming that there is no running water and electricity in India.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than its trading partners.

Total Output

Total output refers to the total value of all goods and services produced in an economy over a specific period.

Specialization

The process by which individuals or entities focus on producing a single or a few products or services, leading to increased efficiency and productivity in the economy.

Opportunity Cost

The economic consequence of overlooking the following preferred choice in making a decision.