CAF-7 · Chapter 1 · Question 8 of 15
A multinational firm intends to enter a new regional market. During its PESTEL analysis, the firm notes that the target country has a rapidly expanding middle class with increasing disposable income. Which sub-category of the 'Social' environment does this primarily represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Wealth distribution
Explanation
The growth of a middle class and changes in disposable income levels directly relate to 'Wealth distribution' within a society, a key social factor that dictates purchasing power and market potential.
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