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Explain the theory of precedent.
Price Leadership
One firm, often the dominant firm in an oligopolistic industry, raises or lowers price, and the other firms quickly match the new price.
Concentration Ratio
A measure used in economics to assess the extent of market concentration by calculating the market share of the largest firms within an industry.
Automobile Imports
Cars and other vehicles brought into a country from abroad for sale, reflecting the trade and economic relations between countries.
Japanese Transplants
Foreign-owned manufacturing plants operated by Japanese companies in another country, typically for automotive production.
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