The builders failed to properly account for potential consumers' lack of wealth challenge in developing countries.
A builder is in charge of managing the entire building process. They manage, organize, and conduct residential and commercial building construction, excavation, demolition, and remodeling projects.
According to the UN, a developing country is one with a moderate to low Human Development Index, a weak industrial base, and a generally low standard of living (HDI). This index provides a global comparison of poverty, illiteracy, education, life expectancy, and other aspects.
Capital gains benefits, private pension assets, inheritance, and the differential in tax rates between income and wealth are the primary variables affecting how wealth is distributed.
According to the wealth effect, a behavioral economic concept, people spend more money as the value of their assets increases. Consumers are supposed to feel more financially secure and wealthy as the value of their houses or investment portfolios rises. Therefore, the lack of wealth challenge is usually faced in developing countries.
The first mall in Mumbai, India was successful. Builders proceeded to construct three more right
away. However, they have more than 50% vacancies because they lack customers. The builders
failed to properly account for which challenge of operating in developing countries?
(A) Underdeveloped infrastructure
(B) Stagnant political policies
(C) Firms have to invest heavily in distribution systems
(D) Firms have to train consumers on how to use their products
(E) Potential consumers' lack of wealth
To learn more about developing countries
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