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Per-Capita GDP Converted at Market Exchange Rates Paints an Inaccurate

Question 47

Multiple Choice

Per-capita GDP converted at market exchange rates paints an inaccurate picture of the market potential of an emerging market because ________.


A) it tends to over-emphasize the role of pricing in driving growth in emerging markets
B) it overlooks the substantial price differences between advanced economies and emerging markets
C) prices are usually higher for most products and services in emerging markets
D) emerging markets do not support inward FDI

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