Asked by Aufata Aiesi on Jun 30, 2024
Verified
Lavender Inc., an American apparel company, is planning to start its operations in Borihia, a country in South America. Sharon, a manager in the company, feels that the company should assess the strength of Borihia's economy before investing there. Which of the following measures can help Lavender Inc. in determining Borihia's economy?
A) Cross price elasticity
B) Customer retention rate
C) Output per person
D) A credit score
Output Per Person
A measure of productivity calculated by dividing total output (such as GDP) by the number of people in the workforce or population.
Cross Price Elasticity
A measure of how the demand for a product changes in response to a change in the price of another related product.
Customer Retention Rate
A measure of a company's ability to keep its customers over a period. It reflects the percentage of customers who remain with the company for a specific time.
- Grasp the importance of assessing an economy's strength before business expansion.
Verified Answer
D0
danelle 0sbornJul 03, 2024
Final Answer :
C
Explanation :
Output per person, or GDP per capita, is a measure of a country's economic output that accounts for its number of people. It provides a more accurate picture of the economic performance and living standards in the country, making it a relevant measure for Lavender Inc. to assess Borihia's economy before investing.
Learning Objectives
- Grasp the importance of assessing an economy's strength before business expansion.