In 1996, All-Points Flashlights merged with North Star Flashlights to form a new company called Allstar Flashlights. In 1997, Allstar Flashlights merged with Bright Idea Lightbulbs to form a new company called Bright Star. Then, in 2000 . Bright Star
merged with Wendy's Kites & Stuff, a company that produces paper kites and other toys, to become BSK International. Describe the kinds of mergers that took place.
The 1996 merger was a horizontal merger where the firms are producing the same good in the same
industry. The 1997 merger was a vertical merger between firms that have a supplier-purchaser relationship.
Finally, the year 200 . merger was a conglomerate merger between firms in unrelated industries.
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An increase in the real exchange rate will tend to ________ exports and to ________ imports.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase
A store is choosing between advertising a credit card fee or a discount for paying cash to its customers. More customers are likely to pay cash if the store owner advertises:
A. the credit card fee. B. the discount for paying cash. C. either one; since it's the same outcome, people won't care one way or another. D. neither one; since people are not likely to pay cash more regardless of how it's advertised.
When each country specializes in producing the good for which it has a comparative advantage:
A. the country that is bigger will gain more surplus. B. the country with the weaker economy will gain more surplus. C. both countries always enjoy equal gains from trade. D. both countries may benefit.
The sum of consumption (C), investment (I), government spending (G), and net exports (X-M) is called:
A. autonomous spending. B. aggregate expenditures. C. Keynesian income D. wealth.