An Industry's Driving Forces

question 62

Multiple Choice

An industry's driving forces

• A)are generally determined by competitive pressures,the sizes of strategic groups,and the power of rival firms' competitive strategies.
• B)generally act in ways that will strengthen or weaken market demand,make competition more or less intense,and lead to higher or lower industry profitability.
• C)frequently cause a leveling off of industry growth and a reduction in the bargaining power of buyers.
• D)are normally triggered by ups and downs in the economy,higher or lower inflation rates,higher or lower interest rates,or important new strategic alliances.
• E)can be triggered by such factors as growing competitive pressures from substitute products,greater seller-supplier collaboration,and the efforts of rival firms to employ new or different offensive strategies.

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Definitions:

Machine-sewn Products

Goods that are manufactured using sewing machines, often implying mass production and consistent quality.

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or a week.

Capital

Refers to financial assets or the financial value of assets, such as cash and investments, as well as physical assets like machinery or buildings, used in the production of goods and services.

Fixed Proportions

A production scenario where inputs are used in a constant ratio, regardless of the level of output.