BYD Is an Example of a New Firm Entering the Global

question 83

Multiple Choice

BYD is an example of a new firm entering the global auto industry.With more firms vying for a U.S.market that is not growing very fast,what will happen?

• A) The rivalry will be about the same.
• B) The intensity of the incumbent firms will decrease.
• C) Competitive intensity is sure to rise.
• D) The incumbents will keep dominant market shares.

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Definitions:

Short-Term Bank Loans

Loans provided by banks that are typically due for repayment within a year or less.

Banks

Financial institutions licensed to receive deposits, offer loans, and provide various other financial services.

Repay

To pay back or return money that was borrowed from a person, bank, or financial institution.

Risk

The potential for loss or the chance that an investment's actual return will differ from the expected return.