Business norms and approaches are an indicator of market potential associated with which context?

• A. Natural resource context
• B. Institutional context
• C. Demographic context
• D. Technological context

Answer: (B)

Verified step by step guidance

1. Understand that the question is asking about the context in which business norms and approaches serve as indicators of market potential.
2. Recall the definitions of each context: Natural resource context relates to availability of physical resources; Demographic context involves population characteristics; Technological context concerns innovations and technology adoption; Institutional context refers to the rules, norms, and regulations that shape business behavior.
3. Recognize that business norms and approaches are part of the institutional framework that influences how markets operate and develop.
4. Identify that the Institutional context includes formal and informal rules, such as laws, customs, and business practices, which directly affect market potential.
5. Conclude that the correct context associated with business norms and approaches as indicators of market potential is the Institutional context.