Question

U.S. startup, MotorShoes, sells athletic shoes with wheels and a small motor that can allow the wearer to reach speeds of up to 10 miles per hour using a handheld remote control. Company founders think the shoes would sell well in big cities with large commuter bases. When searching for countries to expand sales to, the founders would want to identify countries with:_________.
1. high political risk
2. high purchasing power
3. low GDP
4. low market growth

Answer 1

Answer:High purchasing power

Explanation:High purchasing power is the financial ability to buy products and services.

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.

The costs of goods and services are among the most important determinants of purchasing power. When the price level rises, purchasing power decreases, and when the price level falls, purchasing power increases, if all other factors are held equal.