According to Porter's Five Forces Model, in Which of the Following

question 26

Multiple Choice

According to Porter's five forces model, in which of the following situations would the supplier have the highest bargaining power?

• A) a dealer of a patented material for smartphone manufacturers
• B) a fashion designer catering to a niche market
• C) a restaurant owner who serves only army veterans
• D) a retailer who buys finished goods from many small suppliers
• E) a defense contractor that only makes products for the U.S. Navy

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Definitions:

Stock Index

A statistical measure that tracks the performance of a specific basket of stocks, representing a particular market or a segment of it.

Correlations

A statistical measure that indicates the extent to which two or more variables fluctuate in relation to each other.

ADRs

American Depository Receipts (ADRs) are a type of negotiable security that represents shares in a foreign company and is traded on a local stock exchange but represents a specified number of shares in a foreign corporation.

Foreign Firms

Companies that are based in one country but operate and conduct business in other countries.