Which One of Porter's Five Forces Is High When It

question 26

Multiple Choice

Which one of Porter's five forces is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market?

• A) Threat of new entrants.
• B) Threat of substitute products or services.
• C) Threat of buyer power.
• D) Supply chain competition.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy over a period of time.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Nominal Exchange Rate

The price of one currency in terms of another, not adjusted for inflation differences between the countries.

Price Level

The price level represents the average of the current prices of goods and services in an economy, often measured by a price index.