Advertising Can Have a Positive Effect on Competition By

question 88

Multiple Choice

Advertising can have a positive effect on competition by:

• A)assisting new products in the market by making it possible for them to communicate the features and benefits of their products to consumers
• B)serving as an entry barrier to foreign competitors
• C)making it easier for small companies to compete against firms with large advertising budgets
• D)limiting the number of new product introductions
• E)creating economies of scale for both small and large advertisers

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Definitions:

Import Quota

A government-imposed limit on the amount or value of goods that can be imported into a country.

International Bartering

The exchange of goods or services between parties from different countries without using money.

Countertrade

A form of international trade in which goods or services are exchanged for other goods or services, rather than for cash.

Less-Developed Country

A country characterized by low levels of industrialization, socioeconomic development, and often a low standard of living among its population.