Mobility Barriers

question 16

Multiple Choice

Mobility barriers:

• A) allow industries to change their strategy and compete in that strategic group.
• B) inhibit the movement of companies between strategic groups in an industry.
• C) inhibit companies from shifting between suppliers for the raw materials.
• D) are factors that operate outside of an industry.
• E) exclude the barriers to entry into a group and the barriers to exit from a company's existing group.

---

Definitions:

Premium

An amount paid in addition to the standard or nominal cost, often associated with insurance, bonds, or the difference above a product's nominal value.

Spot Rate

The current market price at which a particular asset, such as currency, commodity, or security can be bought or sold for immediate delivery.

Direct Quote

A currency exchange rate quoted as the domestic currency per unit of the foreign currency.

Exchange Rate Risk

The potential for investors or companies to experience financial loss due to fluctuations in the exchange rate between two currencies.