The Nature and Strength of the Competitive Forces That Prevail

question 4

Multiple Choice

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

• A) pressures associated with rivalry among sellers to attract buyer patronage.
• B) threat that firms outside the industry will decide to enter the market.
• C) attempts of companies in other industries to win buyers over to their own substitute products.
• D) competitive pressures stemming from the bargaining power of both suppliers and buyers.
• E) All of these.

Identify how differences in opportunity costs between countries lead to mutual benefits from trade.

Understand the concept of terms of trade and its importance in international exchanges.

Recognize the impact of human and physical capital in determining a country's comparative advantage in certain industries.

Understand why countries might import and export the same type of goods because of the simple comparative advantage theory.

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Definitions:

Heart Attack

A medical condition characterized by the interruption of blood flow to a part of the heart, causing heart cells to be damaged or die, a major cardiovascular event.

The Abdomen

The part of the body between the thorax (chest) and pelvis, in humans and in other vertebrates, housing major digestive organs.

Extra Weight

Additional body mass that may come from fat, muscle, bone, and/or water retention, potentially impacting health.

Cholesterol

A waxy, fat-like substance found in all cells of the body, which is essential for the production of hormones, vitamin D, and substances that help digest foods.