What Is BYD Using to Avoid Entry Barriers Upon Entering

question 39

Multiple Choice

What is BYD using to avoid entry barriers upon entering the automotive industry?

• A) They purchased a major automotive company.
• B) They reduced the switching costs of moving to electric vehicles.
• C) They used proprietary battery technology for use in electric vehicles.
• D) They have an established brand in China.

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Definitions:

Central Planning

An economic system where decisions about production, investment, and distribution are made by the government or a central authority.

Consumer Sovereignty

The concept that consumers' preferences determine the production of goods and services, guiding the allocation of resources in a market.

Monarchy

A form of government where a single person, the monarch, rules until death or abdication, with the position often inherited.

Profits

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.