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EA, Ex 2
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Business Foundations: A Changing World 12th Edition

Business Foundations: A Changing World (12th Edition)

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Book Edition12th Edition
Author(s)Ferrell, Ferrell
ISBN9781260088366
PublisherMcGraw-Hill, Inc.
SubjectBusiness
International Trade Barriers
Entrepreneurship in Action
Responding to Business Challenges
Getting Involved in International Business
Going Green
End Of Chapter
Critical Thinking Questions
Check Your Progress
Get Involved
Build Your Skills
Solve the Dilemma
See for Yourself Videocase

Chapter 3, International Trade Barriers , Entrepreneurship in Action , Exercise 1

Page 79

Explanation

  1.  Ignorance towards low income groups- As the country I is a less developed country, banks were avoiding to give loans to the lower income population and provide normal banking services. Company M is a mobile transfer payment system used by many countries, as it solves the technological barriers faced by underdeveloped nations.  
  2. Distance to Financial institutions- The financial institutions that were present in the country were very far for the population to access on daily basis. The launch of the product reduced the financial distance faced by the country, as it reaches to every corner in the country.

Verified Answer

The launch of Company M has created an ideal condition in mobile banking service. The major reason of a banking company like Company M was other company's and nation's ignorance towards Country K. The countries that did pay attention to Country K did not cater their services to right population. However the two major reasons were:

  1. Ignorance towards low income groups.
  2. Distance to Financial institutions.
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Page 79

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