When you and your opponent battle back and forth having to either drop your prices or higher them.
Answer:
a. In the 17th century, the Dutch East India Company allied with a powerful leader in Indonesia to gain exclusive access to spices, and during the company’s existence, it carried about five times the shipping tonnage of its nearest competitor, an English company.
b. In the 1970s, the Sumitomo Bank of Japan bailed out two major corporate customers at a cost of over $1 billion, greatly hurting its profitability. However, its loyalty to its customers enhanced its reputation, and by 1981 it was Japan’s most profitable financial institution.
d. The Finnish company Stora Enso appeals to the world’s desire to use renewable resources by developing new packaging, paper, textile, and other products based on sustainably grown wood. Quarterly profit recently rose 38% year over year, and the company has garnered much recognition from environmental groups.
Explanation:
Basically there are 3 types of strategies that a company can carry out to try to gain a competitive advantage over its rivals:
- cost leadership strategy: sell the company's products at the lowest price usually through economies of scale. E.G. DUTCH EAST INDIA COMPANY
- differentiation strategy: sell a unique and different product, usually high quality or innovating products. E.G. SUMITOMO BANK
- focus strategy: focus the company's products towards a narrow target segment (niche) either through cost leadership or differentiation. E.G. STORA ENSO
true- To promote stability in commodity markets, international commodity agreements have relied on production and export controls, buffer stocks, and multilateral contracts.
Answer:
$12
Explanation:
Calculation to determine the lowest acceptable transfer price from the perspective of selling division
Using this formula
Lowest Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
Where,
Variable Costs per unit = $12
Internal Savings = $0
Opportunity Cost = $0
Let plug in the formula
Lowest Transfer Price = $12-$0+$0
Lowest Transfer Price = $12
Therefore the lowest acceptable transfer price from the perspective of selling division is $12
Explanation:
Households supply labor to firms and are paid wages in return. Firms use that labor to produce pizzas and sell those pizzas to households. There is a flow of goods (pizzas) from firms to households and a flow of labor services (worker hours) from households to firms.
