Use the Following to Answer Questions

question 201

Multiple Choice

Use the following to answer questions :
-(Table: Comparative Advantage I) Look at the table Comparative Advantage I. Sweden has a comparative advantage in producing:

• A)cell phones only.
• B)herring only.
• C)both cell phones and herring.
• D)neither cell phones nor herring.

Identify specific strategies appropriate for each category (Dogs, Question Marks, Stars, Cash Cows) in the BCG Matrix.

Differentiate between various business growth strategies such as concentration, diversification (related and unrelated), integration (forward, backward, vertical), and retrenchment.

Recognize strategies suited for business renewal and stabilization such as restructuring, turnaround, and liquidation.

Comprehend the strategic implications of business growth through mergers, acquisitions, and global expansion.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Zero Salvage Value

An indication that an asset will have no residual value at the end of its useful life.

Incremental Cost

The additional cost associated with manufacturing one more unit of product or providing an additional service.

Variable Cost

Costs that vary directly with the level of production or business activity, such as materials and labor used in production.