Sharing Core Competencies Is One of the Primary Potential Advantages

question 72

Multiple Choice

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that the

• A)products use similar distribution channels.
• B)similarity required for sharing core competencies must be in the value chain.
• C)target market is the same, even if the products are very different.
• D)methods of production are the same.

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Definitions:

Net Exports

Spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports).

Central Bank

An institution that manages a country's currency, money supply, and interest rates, usually with the aim of managing inflation and ensuring financial stability.

Federal Reserve Act

The act of Congress that created the Federal Reserve System in 1913, establishing the central banking system of the United States.

Maximum Employment

An economic situation in which all available labor resources are being used in the most efficient way possible.