The External Environment in Which Firms Compete Exerts a Strong

question 134

True/False

The external environment in which firms compete exerts a strong influence on firms' profitability.

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Definitions:

Realistic Conflict Theory

A theory suggesting that intergroup conflicts arise when groups are in competition for limited resources.

In-Group

A social group to which an individual feels they belong, often characterized by a strong sense of identity and loyalty.

Out-Group

A social group toward which a person feels a sense of competition or opposition.

Social Identity Theory

A psychological theory that explains how individuals categorize themselves and others into groups, leading to identification with one's own group and discrimination against others.