Under Which of the Following Conditions Should a Firm Ideally

question 60

Multiple Choice

Under which of the following conditions should a firm ideally choose the acquisition mode of entry?

• A)When it can afford to enter new arenas slowly
• B)When its industry favors competitors with small scale
• C)When its industry is characterized by a steep learning or experience curve
• D)When its industry demands standardized knowledge and skills that can be easily gained

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Definitions:

Economies of Scale

A concept in economics that describes the cost advantage that arises with increased output of a product, leading to a decrease in the per-unit fixed cost as the scale of production is enlarged.

Downturn in Economy

A period when economic activity is declining, marked by decreased spending and increased unemployment.

Regulatory Changes

Modifications or updates to the rules and regulations that govern industry practices and standards.

Market Competition

The rivalry among businesses to attract customers, aiming to increase market share by offering better products, prices, or services.