Which of the following factors is most likely to contribute to the growth of direct selling in an economy?

• A. Decreasing consumer interest in personalized products
• B. Rising barriers to entry for small businesses
• C. Strict government regulations on individual sellers
• D. Increasing access to internet and digital platforms

Answer: (D)

Verified step by step guidance

1. Understand the concept of direct selling: it involves selling products directly to consumers without intermediaries, often relying on personal relationships and direct communication.
2. Analyze how consumer interest affects direct selling: increasing interest in personalized products typically boosts direct selling, while decreasing interest would reduce it.
3. Consider the impact of barriers to entry: rising barriers make it harder for small businesses and individual sellers to enter the market, which would likely hinder direct selling growth.
4. Evaluate the role of government regulations: strict regulations on individual sellers can limit their ability to operate freely, thus negatively affecting direct selling.
5. Recognize how increasing access to internet and digital platforms facilitates direct selling by enabling sellers to reach more consumers easily and efficiently, thereby promoting growth in this sector.