Understanding the Structure of the Industry Helps Managers to Work

question 16

True/False

Understanding the structure of the industry helps managers to work out how to make a profit in future and to possibly identify ways to change the industry structure to their advantage.

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Definitions:

Inflation

How fast the general price index for merchandise and services escalates, corroding the purchasing strength.

Spot Rate

The current market price of a currency, security, or commodity available for immediate delivery.

Interest Rate Parity

A theory asserting that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and spot exchange rate.

T-Bills

Short-term government securities issued at a discount from their face value, maturing in one year or less.