Which of the Following Statements About the Use of the Internet

question 60

Multiple Choice

Which of the following statements about the use of the Internet in global marketing is true?

• A) Global consumers are much more interested in buying quality than finding a bargain when they shop on the Internet.
• B) The new Internet economy is being restrained by the old bricks-and-mortar rules,regulations,and habits.
• C) Businesses are not shopping at Internet Web sites.
• D) Buyers at Internet sites avoid trade restrictions.
• E) All of these statements about the use of the Internet in global marketing are true.

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Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Fisher Effect

A theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates.

Nominal Interest Rate

The interest rate as stated without adjustment for inflation, representing the face value of financial transactions.

Real Interest Rate

This rate adjusts the nominal interest rate to remove the effects of inflation, providing a more accurate measure of the true cost of borrowing or the true return on investment.