In Practice, Drawing the Boundaries of Industries and Markets Is

question 60

Multiple Choice

In practice, drawing the boundaries of industries and markets is:

• A)A matter of personal preference on behalf of top managers
• B)Almost impossible to carry out with rigor because it requires many "rules of thumb" and approximations
• C)Largely a matter of judgment and experience contingent on the purpose of the analysis
• D)Critical to the output of the analysis and therefore should only be undertaken with the help of an academic or consultant

---

Definitions:

International Trade

The exchange of goods, services, and capital across international borders, driven by the concept of comparative advantage.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competition with domestic products.

Exported

Products or services that are transported from one nation to another for the purpose of being sold or traded.