If a Firm's Resources and Capabilities Are Costly to Imitate

question 7

Multiple Choice

If a firm's resources and capabilities are costly to imitate because imitating firms may not understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage, this competitive advantage is said to be protected from imitation by

• A) path dependence.
• B) causal ambiguity.
• C) unique historical conditions.
• D) social complexity.

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Definitions:

Comparative Advantage

The ability of a country or entity to produce a good or offer a service at a lower opportunity cost than competitors, facilitating specialized trade benefits.

Production Data

Information and statistics related to the amount and types of goods and services produced within a particular period.

Quotas and Tariffs

Quotas and tariffs are trade policies where quotas limit the quantity of goods that can be imported, and tariffs are taxes imposed on imported goods to make them more expensive.

Foreign Governments

The governing bodies or authoritative administrations of countries other than one's own.