Relate Your Understanding of the Porter's Five Forces Model to Describe

question 61

Essay

Relate your understanding of the Porter's Five Forces model to describe how the Internet affects the bargaining power of buyers and sellers according to whether offers commodity or differentiated products.

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Definitions:

Merchandise Exports

Goods produced domestically and sold to buyers in another country.

Freely Floating Exchange Rates

A system where the value of currencies is determined by supply and demand in the foreign exchange market without direct intervention by central banks.

Bretton Woods Agreement

An agreement established in 1944 which set up an international monetary system based on fixed exchange rates and established the International Monetary Fund (IMF) and the World Bank.

Net Indebtedness

The total amount of borrowed money minus assets or reserves, indicating a person's, company's, or country's financial obligations.