How Has the Global Economy Changed the Competitive Environment

question 40

Multiple Choice

How has the global economy changed the competitive environment?

• A) Suppliers are not required to reach a wide range of customers.
• B) Customers now have less access to information about substitutes.
• C) It has intensified rivalry by increasing product and vendor choices.
• D) It has made it easier for new market entrants in all fields to penetrate the market.

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Definitions:

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery.

Discount

The reduction in the nominal value of something or the process of determining the present value of future cash flows.

Direct Quote

In foreign exchange, a price quote that specifies the domestic currency price of one unit of foreign currency.

Indirect Quote

A currency quotation in the foreign exchange markets that expresses the amount of foreign currency required to buy or sell one unit of the domestic currency.