In emerging markets, MNEs must set prices appropriate for local conditions because ________.
A)research and development is relatively cheaper in emerging markets
B)of high corruption and bureaucracy
C)of inadequate legal framework
D)emerging market consumers cannot pay high prices

Question

Quizplus · Accepted Answer

Emerging market consumers generally have lower purchasing power, making it difficult for MNEs to set high prices. Therefore, MNEs must set prices appropriate for local conditions to ensure that their products are affordable and competitive in the market.

In Emerging Markets, MNEs Must Set Prices Appropriate for Local