What Do Sony, Microsoft, and Nintendo Have in Common

question 3

Multiple Choice

What do Sony, Microsoft, and Nintendo have in common?

• A) Each achieved a dominant position in its industry because it owned a key input in the production of its product.
• B) The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry.
• C) Each company was founded in the same state.
• D) The profitability of each firm depends on its interactions with other firms.

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Definitions:

Balance of Payments Surplus

A situation where the total of the payments received from abroad exceeds the total of the payments made to abroad.

FX Reserves

Short for foreign exchange reserves; assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.

Economic Fortune

The state of prosperity or success, especially as determined by economic variables such as income, employment, and market position.

Exchange-rate System

The method by which a country manages its currency in relation to other currencies and determines its exchange rate.