In the Context of the Resource-Based Model of Competitive Advantage,which

question 43

Multiple Choice

In the context of the resource-based model of competitive advantage,which of the following scenarios best exemplifies resource immobility?

• A) AP Corp. has earned a good reputation among its shareholders by investing more in tangible assets over intangible assets.
• B) Two Triangle Inc. has lost its market share because its resources are not mobile, that is rigid, inflexible, and static.
• C) Blue Elixir Corp. has been able to gain a competitive advantage because of its ability to efficiently move its resources from one manufacturing unit to another.
• D) True 3 Inc. has been able to outperform its competitors because the uniqueness of its resources is difficult to replicate.

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Definitions:

Reluctant

Showing hesitation or unwillingness to do something.

Hedging

A financial strategy used to reduce or limit the risk of price movements in commodities, currencies, or securities, by taking an offsetting position in a related security.

Currency Exchange

The process of exchanging one country's currency for another, affecting international trade and investments due to fluctuating exchange rates.

Price Risks

The uncertainty and potential financial loss associated with changes in the price of goods, services, or commodities.