Final answer:
The correct answer is that understanding local regulations and customs is crucial for success in developing markets, as cultural differences and political instability present significant challenges.
Step-by-step explanation:
The correct statement about entering developing markets such as China, India, Russia, and Brazil is that understanding local regulations and customs is crucial for success in these markets. Despite the potential for rapid growth and significant opportunities, businesses must navigate risks unique to these economies, such as cultural differences, political instability, and the need for market reforms and investment in infrastructure. To achieve success, firms must be attuned to the local context, which includes respecting local cultures, adhering to domestic regulations, and understanding the political and economic dynamics of these markets.