Question 1

Mutual forbearance refers to retaliatory attacks on a competitor's other markets if this competitor attacks a firm's original market.

Accepted Answer

A) True 
 B)False

Question 2

Firms are allowed to organize strategic alliances with rivals for cost reduction.

Accepted Answer

A) True 
 B)False

Question 3

An industry with heterogeneous products,in which rivals are forced to compete on price,is likely to lead to collusion.

Accepted Answer

A) True 
 B)False

Question 4

A price leader is a firm that ____ in the industry.

Accepted Answer

A)   sets the highest prices and has a low market share 
B)   sets the lowest prices 
C)   sets acceptable prices and has a dominant market share 
D)   sets the globally consistent priceE) None of the above
F) A) and B)

Question 5

Which of the following is defined as the degree of overlap between two rivals' markets?

Accepted Answer

A)   Cross-market retaliation 
B)   Market commonality 
C)   Multimarket competition 
D)   Mutual forbearanceE) A) and C)
F) None of the above

Question 6

Which of the following is a theory that studies the interactions between two parties that compete and/or cooperate with each other?

Accepted Answer

A)   Predatory pricing 
B)   Game theory 
C)   Prisoner's dilemma 
D)   Cross-market retaliationE) None of the above
F) B) and C)

Question 7

____ is the strategy that focuses on a firm engaging in rapid learning and then expanding overseas.

Accepted Answer

A)   Defender strategy 
B)   Extender strategy 
C)   Dodger strategy 
D)   Contender strategyE) A) and B)
F) C) and D)

Question 8

Antitrust policies aim to balance efficiency and fairness in trade.

Accepted Answer

A) True 
 B)False

Question 9

Explain the three drivers of counterattacks.

Accepted Answer

There are three drivers for counterattac...

Question 10

Prisoners' dilemma is a type of game in which the outcome depends on two parties deciding whether to cooperate or to defect.

Accepted Answer

A) True 
 B)False

Question 11

____ centers on cooperating through joint ventures with MNEs and sell-offs to MNEs.

Accepted Answer

A)   Defender strategy 
B)   Extender strategy 
C)   Dodger strategy 
D)   Contender strategyE) A) and D)
F) A) and B)

Question 12

_____ occurs when firms engage the same rivals in numerous markets.

Accepted Answer

A)   Multimarket competition 
B)   Explicit collusion 
C)   Cross-border dumping 
D)   Cross-market retaliationE) A) and B)
F) A) and D)

Question 13

Minimizing an opponent's awareness,motivation,and capabilities is more likely to result in successful attacks.

Accepted Answer

A) True 
 B)False

Question 14

The lowest intensity of rivalry between competitors is the result of high resource similarity and low market commonality.

Accepted Answer

A) True 
 B)False

Question 15

Market commonality refers to the degree of similarity between two rival's products.

Accepted Answer

A) True 
 B)False

Question 16

The antitrust policies in the United States make it difficult for incumbents to raise entry barriers for new entrants.

Accepted Answer

A) True 
 B)False

Question 17

Explain how interaction differs between tacit collusion and explicit collusion.

Accepted Answer

Collusion is the collective attempt betw...

Question 18

The percentage of total industry sales accounted for by the top firms is called _____.

Accepted Answer

A)   commonality ratio 
B)   collusion index 
C)   concentration ratio 
D)   barriers to entryE) B) and C)
F) A) and D)

Question 19

Which combination of resource similarity and market commonality results in the most intense competition?

Accepted Answer

A)   High resource similarity, low market commonality 
B)   Low resource similarity, high market commonality 
C)   Low resource similarity, low market commonality 
D)   High resource similarity, high market commonalityE) A) and B)
F) None of the above

Question 20

Making a rival aware of an attack makes it easier for the attacker to achieve its objective.

Accepted Answer

A) True 
 B)False

Exam 11: Managing Global Competitive Dynamics

The lowest intensity of rivalry between competitors is the result of high resource similarity and low market commonality.

Correct AnswerverifiedShow Answer

Antitrust policies aim to balance efficiency and fairness in trade.

Correct AnswerverifiedShow Answer

Making a rival aware of an attack makes it easier for the attacker to achieve its objective.

Correct AnswerverifiedShow Answer

Which of the following is a theory that studies the interactions between two parties that compete and/or cooperate with each other?

Correct AnswerverifiedShow Answer

____ centers on cooperating through joint ventures with MNEs and sell-offs to MNEs.

Correct AnswerverifiedShow Answer

Minimizing an opponent's awareness,motivation,and capabilities is more likely to result in successful attacks.

Correct AnswerverifiedShow Answer

_____ occurs when firms engage the same rivals in numerous markets.

Correct AnswerverifiedShow Answer

Firms are allowed to organize strategic alliances with rivals for cost reduction.

Correct AnswerverifiedShow Answer

The percentage of total industry sales accounted for by the top firms is called _____.

Correct AnswerverifiedShow Answer

The antitrust policies in the United States make it difficult for incumbents to raise entry barriers for new entrants.

Correct AnswerverifiedShow Answer

Market commonality refers to the degree of similarity between two rival's products.

Correct AnswerverifiedShow Answer

Which combination of resource similarity and market commonality results in the most intense competition?

Correct AnswerverifiedShow Answer

Which of the following is defined as the degree of overlap between two rivals' markets?

Correct AnswerverifiedShow Answer

____ is the strategy that focuses on a firm engaging in rapid learning and then expanding overseas.

Correct AnswerverifiedShow Answer

Prisoners' dilemma is a type of game in which the outcome depends on two parties deciding whether to cooperate or to defect.

Correct AnswerverifiedShow Answer

Mutual forbearance refers to retaliatory attacks on a competitor's other markets if this competitor attacks a firm's original market.

Correct AnswerverifiedShow Answer

Explain the three drivers of counterattacks.

Correct AnswerverifiedThere are three drivers for counterattac...View AnswerShow Answer

An industry with heterogeneous products,in which rivals are forced to compete on price,is likely to lead to collusion.

Correct AnswerverifiedShow Answer

Explain how interaction differs between tacit collusion and explicit collusion.

Correct AnswerverifiedCollusion is the collective attempt betw...View AnswerShow Answer

A price leader is a firm that ____ in the industry.

Correct AnswerverifiedShow Answer

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There are three drivers for counterattac...
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Collusion is the collective attempt betw...
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Correct Answer
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