Scenario: Blickinstock at the Crossroads

question 129

Multiple Choice

Scenario: Blickinstock at the Crossroads
Auto parts supplier,Blickinstock Ltd. ,would like to expand its presence in Latin America.To that end,Blickinstock is trying to decide whether to purchase an existing company in a remote region of Argentina or build its own subsidiary.Keith Moon,Blickinstock's vice president of global business development,will be making a presentation to the board outlining the company's options.
-If Blickinstock's home government tries to stop the company from investing in Latin America,the government may be trying to ________.

• A)protect its balance of payments
• B)prevent a monopoly situation from occurring
• C)instill an invest-at-home focus among its home companies
• D)determine whether Blickinstock is a "sunset industry" company

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Definitions:

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly due to a change in its price.

Marginal Revenue Curve

A curve that shows the change in total revenue resulting from selling one additional unit of a product or service.

Standardized Product

Products that are uniform in quality and features, offering no significant difference from the same products offered by other sellers.

Differentiated Product

A product that is distinct from similar products offered by competitors, often through quality, features, or branding.