Mobility Barriers

question 71

Multiple Choice

Mobility barriers:

• A) allow industries to change their strategy and compete in an alternate strategic group.
• B) inhibit the movement of companies between strategic groups in an industry.
• C) inhibit companies from shifting between suppliers for raw materials.
• D) are factors that operate outside of an industry.
• E) exclude the barriers to entry into a group and the barriers to exit from a company's existing strategic group.

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Definitions:

Gilts

Government bonds issued by the United Kingdom, considered low-risk investments since they are backed by the British government.

Unbiased Forward Rates

Interest rates or currency exchange rates that are equal to the expected future spot rates, implying no arbitrage opportunities.

Exchange Rate

The exchange rate reflecting the value of one currency compared to another.

Spot Exchange Rate

This is the current exchange rate at which two currencies can be exchanged immediately.