Explain and Give an Example of How Firms Will Use

question 31

Essay

Explain and give an example of how firms will use the theory of bottom of the pyramid in the global economy.
Firms can find significant business opportunities serving the 4 billion people at the bottom of the pyramid.In the process,they can improve the living standard of the world's poorest.How can they do this? One example is Muhammad Yunus,who discovered a way to provide small loans (microcredit)to impoverished villagers in Bangladesh.These loans have allowed villagers to overcome their poverty.

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Definitions:

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its effect on the dependent variable.

Direction of Cause and Effect

Pertains to determining which variable influences the other in a cause-and-effect relationship.

Experimental Methods

Research designs involving the manipulation of variables to determine cause-and-effect relationships.

Nonexperimental Methods

Research designs that do not involve the manipulation of variables or random assignment of participants.