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Describe the Characteristics of an Industry in Which Competitive Rivalry

question 40

Essay

Describe the characteristics of an industry in which competitive rivalry and price cutting are most intense.


Definitions:

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a certain period of time.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period, often reflecting the flow of funds abroad.

Domestic Investment

Expenditures made within a country by individuals, businesses, or the government for the purpose of acquiring goods and services to increase future production.

National Saving

Refers to the sum of private savings and government surplus, an important indicator of a country's ability to invest in its future.

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