Question :
71.A critical competitive feature of an oligopoly is:
A. the lack of : 1299332
71.A critical competitive feature of an oligopoly is:
A. the lack of interaction among the major players.
B. the presence of a domestic market which is open for foreign firms.
C. the desire of all the major players to avoid the phenomenon of diminishing returns.
D. the interdependence of the major players.
E. the lack of imitative behavior among the major players.
72.If one firm in an oligopoly cuts prices, then most likely, its competitors:
A. will make profits.
B. will also respond with similar price cuts.
C. will correspondingly raise prices.
D. will capture additional market share.
E. will not be impacted by the price cuts.
73.The interdependence between firms in an oligopoly leads to _____.
A. trade wars
B. a decrease in the supply
C. imitative behavior
D. higher demand
E. increased domestic consumption
74.QFresh, a brand for energy drinks launched a healthy lime based drink without preservatives. Immediately after this another brand, Fast Fizz, which manufactures energy drinks, also announced the launch of a new refreshing drink without preservatives. Then Ignite, a third brand of energy drinks, reduced the price of its apple based drink. Which of the following is most likely to happen in this oligopolistic market set up?
A. QFresh and Fast Fizz will reduce the prices of their respective drinks.
B. Fast Fizz will launch another new drink.
C. QFresh will tie up with Ignite to launch a completely new product.
D. Fast Fizz and Ignite will collaborate against QFresh.
E. QFresh will have an increased domestic consumption.
75.A(n) _____ arises when two or more enterprises encounter each other in different regional markets, national markets, or industries.
A. monopoly
B. monopsony
C. cartel
D. multipoint competition
E. oligopsony
76.The idea behind multipoint competition is to ensure that:
A. a rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere.
B. the competitors cooperate with each other to establish a cartel.
C. no other competitors can enter the market unless they resort to licensing or franchising with the initial pioneers.
D. growing technologies or business methods in new markets are transferred to established markets.
E. the firms in an industry prefer FDI over licensing or exporting.
77.The difference between Internalization theory and imitative theory is that:
A. internalization theory does not explain why the first firm in an oligopoly decides to undertake FDI rather than to export or license.
B. imitative theory addresses the issue of whether FDI is more efficient than exporting or licensing for expanding abroad.
C. most economists favor imitative theory as an explanation for FDI.
D. no important aspect of FDI is explained by imitative theory.
E. internalization theory addresses the issue of efficiency of FDI over exporting or licensing.
78.Which of the following concepts helps explain how location factors affect the direction of FDI?
A. The eclectic paradigm
B. The protectionism argument
C. The product life-cycle theory
D. The new trade theory
E. The infant industry argument
79.Location-specific advantages for a firm are those that arise from:
A. acquiring the home markets of foreign firms that threaten a firm’s domestic market.
B. gaining a commanding position in one market and using them to subsidize competitive attacks in other markets.
C. preferring exporting over licensing in order to retain control over know-how, manufacturing, marketing, and strategy.
D. utilizing resource assets that are tied to a particular foreign location and valuable enough to be combined with the firm’s own unique assets.
E. franchising and licensing.
80.Which of the following is true about Dunning’s arguments?
A. Dunning rejects the argument of internalization theory that it is difficult for a firm to license its own unique capabilities and know-how.
B. Dunning suggests that to exploit such foreign resources, such as oil and other minerals, a firm must undertake licensing rather than FDI.
C. Dunning argues that it makes sense for a firm to locate production facilities in those countries where the cost and skills of local labor is most suited to its particular production processes, since labor is not internationally mobile.
D. Dunning’s theory and its extensions help explain the imitative FDI behavior by firms in oligopolistic industries.
E. Dunning argues that combining location-specific assets or resource endowments with the firm’s own unique capabilities always requires licensing.
