The Five Forces Model Is Primarily Used for Analysis of the Industry's

question 12

Essay

The Five Forces model is primarily used for analysis of the industry's profit potential.What can we say about the relationship between the forces and the profits?

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Definitions:

Government Involvement

The role played by a government in regulating and participating in economic activities, including implementing policies that affect the economy.

Federal Spending

Expenditures by the federal government on various programs, infrastructure, and services, financed by taxes and other revenues.

Payroll Tax

Obligations enforced on either the workforce or the employers, generally estimated as a share of the compensation employers offer to their staff.

Proportional Taxes

Taxes that are imposed at a constant rate regardless of the income level of the taxpayer.