The Competitive Advantage That One Firm Has Will Be Short-Lived

question 100

Multiple Choice

The competitive advantage that one firm has will be short-lived in an industry in which

• A) resource immobility is high.
• B) perfect competition exists.
• C) resource heterogeneity is high.
• D) capabilities of a firm are not easily replicable.

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Definitions:

Exchange Rate

The price of one country's currency expressed in terms of another country's currency, facilitating international trade and finance.

Cross-Rate

The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar).

Exchange Rate

The worth of a certain currency depicted through the value of a different currency.

Foreign Currency Approach

A method in international finance that involves analyzing business or investment decisions based on their impact in foreign currency terms.