In Porter's Five Competitive Forces model, "competition from substitute goods or services" refers to
A) substitute products that come from outside the industry.
B) substitute products that come from foreign competitors in the same industry.
C) substitute products that come from domestic competitors in the same industry.
D) competition from producers of substitutes who outsource their production.
A
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According to the case for analysis (Demand and Supply in the Copper Industry) in the text, all of the following can lead to a decline in the price of copper except:
A) steady production uninterrupted by labor strikes or natural disasters. B) substitution away from copper to other materials such as aluminum and plastic. C) an increase in mining of higher grade materials. D) a surge in demand from foreign importers.
If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
a. Price would increase and quantity would decrease. b. Price would decrease and quantity would decrease. c. Price would increase and quantity would increase. d. Price would decrease and quantity would increase.
The adaptive expectations hypothesis implies that people
a. adjust their expectations quickly to policy changes. b. expect the next period to be pretty much like the recent past. c. will always be correct in their forecast for the next period. d. change their expectations about the future if policy changes.
One World View article titled "EU Farm Subsidies" reports, "… France, Germany, and Switzerland all shield their farmers from international competition while subsidizing their exports." Which of the following shifts for agricultural products in international markets shows the effect of export subsidies?
A. The demand curve shifts to the right. B. The supply curve shifts to the left. C. The demand curve shifts to the left. D. The supply curve shifts to the right.