Toyota Uses a Strategic Network of Vertical Relationships

question 44

Multiple Choice

Toyota uses a strategic network of vertical relationships.Toyota enables engineers in supplier firms to communicate easily with companies with which Toyota has contracts for services.This results in the suppliers and Toyota (the strategic center firm) being more:

• A) interdependent.
• B) competitive with one another.
• C) creative.
• D) complementary.

---

Definitions:

State Excise Tax

Taxes imposed by a state on particular goods or activities, such as alcohol, cigarettes, and gasoline.

Federal Excise Tax

A tax imposed by the federal government on the sale of certain goods and services, such as gasoline, alcohol, and tobacco.

Efficiency Loss

The loss of economic efficiency that can occur when the balance between supply and demand is not achieved or when market conditions lead to a misallocation of resources.

Marginal Benefit

The additional satisfaction or utility gained by consuming or producing one more unit of a good or service.