The Key to Success for U

question 168

True/False

The key to success for U.S. firms operating internationally is to increase their efforts to maintain high quality while decreasing expenditures on new-product development.

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Definitions:

Herfindahl-Hirschman Index

An index used to assess the concentration of market power to determine the degree of competition in a sector.

Squared Market Shares

A measure used in economics to assess the level of market concentration by squaring the market share percentages of each firm within the industry and then summing them.

Concentration

The degree of market power held by a few companies within an industry, often measured using indices like the HHI.

Economies of Scale

The reduction in per-unit cost as the volume of production increases, due to factors like specialization and bulk purchasing.