Industry Conditions Change Because of

question 108

Multiple Choice

Industry conditions change because of

• A)such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers.
• B)newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups.
• C)newly emerging industry key success factors.
• D)important forces enticing or pressuring certain industry participants (competitors, customers, suppliers)to alter their actions in important ways.
• E)changes in the barriers to entry and the degree of competition from substitute products.

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Definitions:

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.

Trade

The process of purchasing, selling, or trading goods and services among individuals, companies, or nations.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance without excess supply or demand.

Tax Policy

The set of laws and regulations governing how taxes are collected, managed, and utilized by a government.