Because of Slowing Sales, Arm & Hammer Started Promoting Innovative

question 98

Multiple Choice

Because of slowing sales, Arm & Hammer started promoting innovative uses for its baking soda. By searching for new market opportunities, the manufacturer of Arm & Hammer is using which type of adaptive strategy?

• A) defending
• B) cost leading
• C) analyzing
• D) reacting
• E) prospecting

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Definitions:

Increasing Returns

A situation in economics where an increase in the scale of production leads to a more than proportionate increase in output, often due to efficiencies gained.

Trade Pattern

The general flow of import and export transactions between countries or regions.

Exports

Goods or services sent from one country to be sold or used in another country.

Opportunity Cost

The abandonment of gains that might have come from different options when a particular choice is prioritized.