According to Porter,the Nature of the Interaction Between Potential Industry

question 15

Multiple Choice

According to Porter,the nature of the interaction between potential industry entrants,buyers,substitute products,suppliers,and rival firms determines:

• A)whether or not the government will launch an antitrust investigation.
• B)the industry's profit potential in terms of long-run return on invested capital.
• C)whether a country can generate a balance of payments surplus.
• D)whether a country can create a comparative advantage in the production of differentiated products.
• E)whether a country can generate income by innovation.

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Definitions:

Preference Rule

A guideline or rule that prioritizes alternatives based on certain criteria, often used in decision-making processes.

Nominal Cost

The cost expressed in current monetary terms without adjustment for inflation, often contrasted with real cost.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.

Internal Rate

Often referred to as the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project zero.