The Forces That Create High Rivalry Within an Industry Include

question 50

Multiple Choice

The forces that create high rivalry within an industry include all of the following EXCEPT:

• A) numerous or equally balanced competitors.
• B) high fixed costs.
• C) fast industry growth.
• D) high storage costs.

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Definitions:

Imports

Goods and services purchased from other countries and brought into a country.

Inflation

The speed at which the overall price level for goods and services increases, thereby diminishing buying power.

Floating Exchange Rates

A system in which currency values are allowed to fluctuate according to foreign exchange market mechanisms without direct intervention by the country’s government.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount loaned, which lenders charge borrowers.