In the Long Run, Entering New Markets with Internally Developed

question 56

Multiple Choice

In the long run, entering new markets with internally developed products can be less risky than entering through acquisition, especially if the latter becomes a substitute for:

• A)innovation
• B)risk analysis
• C)international diversification
• D)strategic planning

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Definitions:

Perfectly Competitive

A market structure characterized by many buyers and sellers, where each has negligible influence on the market price of homogeneous products.

U.S. Airline Industry

A sector that encompasses all airlines operating within the United States, including domestic and international carriers.

Agricultural Markets

Marketplaces where agricultural products, including crops and livestock, are bought and sold, often influenced by seasonal cycles and global demand.

Arbitrage

Practice of buying at a low price at one location and selling at a higher price in another.