The Most Obvious Way That Firms Can Try to Differentiate

question 12

Multiple Choice

The most obvious way that firms can try to differentiate their products is by

• A) making the product more complex.
• B) introducing the product at the right time.
• C) customizing the product for a particular segment.
• D) altering the features of the products they sell.

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Definitions:

Protectionism

Economic policy of restricting imports from other countries through methods such as tariffs and quotas, intended to protect domestic industries from foreign competition.

Infant Industries

New or emerging industries in a country that are protected by the government through subsidies or tariffs to promote growth.

Foreign Suppliers' Dumping

The practice where a company exports a product at a price lower than the price it normally charges in its own home market, often with the intention to undercut local markets or gain market share.

Comparative Advantage

An economic theory that describes how entities can gain and benefit from trade if they produce goods and services at a lower opportunity cost than their trade partners.