A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that country. In other words,what would be a determining factor in the company's global strategy?
A)purchasing power
B)political uncertainty
C)expropriation potential
D)infrastructure

Question

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that country. In other words,what would be a determining factor in the company's global strategy?
A)purchasing power  
B)political uncertainty  
C)expropriation potential  
D)infrastructure

Quizplus · Accepted Answer

Discretionary income refers to the money that a person has left over after paying for necessities like housing, food, and utilities. A cosmetics company would be interested in this because it would indicate whether people in the country have enough money to spend on non-essential items like cosmetics. Purchasing power is directly related to discretionary income and would be a determining factor in the company's global strategy. The other options are also important considerations for global strategy, but not as directly related to a cosmetics company's market entry decision as purchasing power.

A Cosmetics Company That Is Considering Entering the South American