Focused Strategies Keyed Either to Low Cost or Differentiation Are

question 4

Multiple Choice

Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where

• A)the market is composed of distinctly different buyer groups who have different needs or use the product in different ways.
• B)most other rival firms are using a best-cost producer strategy.
• C)buyers have strong bargaining power and entry barriers are low.
• D)most industry rivals have weakly differentiated products.
• E)most industry participants are also using a focused differentiation strategy.

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Definitions:

International Trade

The exchange of goods and services between countries, driven by comparative advantages.

World Trade Organization

An international organization that regulates trade between nations to ensure that trade flows as smoothly, predictably, and freely as possible.

International Trade Agreements

Treaties in which a country promises to engage in less trade protection against the exports of other countries in return for a promise by other countries to do the same for its own exports.

Autarky

An economic condition or system in which a country is self-sufficient and does not engage in international trade.