According to Porter,the Nature of the Interaction Between Potential Industry

question 15

Multiple Choice

According to Porter,the nature of the interaction between potential industry entrants,buyers,substitute products,suppliers,and rival firms determines:

• A)whether or not the government will launch an antitrust investigation.
• B)the industry's profit potential in terms of long-run return on invested capital.
• C)whether a country can generate a balance of payments surplus.
• D)whether a country can create a comparative advantage in the production of differentiated products.
• E)whether a country can generate income by innovation.

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Definitions:

Treaties

Formal agreements between two or more sovereign states governed by international law.

Antitrust

Legislation enacted to increase competition in the marketplace by preventing monopolies, anti-competitive practices, and other unfair business tactics.

Bankruptcy

The legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Writ of Certiorari

A court order that directs a lower court to deliver its record in a case so that the higher court may review it.