Acquiring an existing firm operating in a foreign country rather than undertaking internal development may be the least risky and cost-efficient means of overcoming entry barriers such as-Gaining access to local distribution networks,building supplier networks,and establishing working relationship with key government officials
Explanation:
When a firm takes a decision to acquire a firm which is operating in other foreign company ,it enjoys the below mentioned advantages:
The firm does not face any entry barrier
The cost of acquiring a firm is less in comparison to the cost the company would have incurred if it opted for the internal development of a firm .
The acquired firm already has a established market in its home country ,so less cost is incurred on advertisement.
The acquired firm also has a pre-existing network of suppliers,local distribution network.Thus the firm faces less problem in its operations.
Thus for a company who wants to succeed quickly without putting much effort can always opt for the acquisition strategy in foregin Market.
Over the past several decades, advances in technology, greatly reduced the cost of making computers which resulted in the decline of the equilibrium price of computers and also resulted in increased equilibrium quantity. The reduction in the computer prices also caused an increase in the consumer surplus.
computer price down -> equilibrium price down
computer price down -> equilibrium quantity up
computer price down -> consumer surplus up
The producer surplus increases due to increase in quantity and at the same time producer surplus decreases due to decrease in price.
In simple words, The fundamental mistake throughout the attribution refers to the propensity for individuals to overemphasise personal attributes and neglect environmental variables in evaluating actions of others.
For instance, in one experiment whenever something unpleasant occurred to somebody else, participants blamed the actions or attitude of that individual 65 per cent of the total times. Thus, from the above we can conclude that the correct option is B.
It refers to the method to strategize the business or the product in a very unique and innovative manner , is referred to as broad differentiation strategy .
The method is done by trying to adapt new method to present their goods and services , add new features , tries to relate to the likes and dislikes of the consumers .
The method is very helpful for a larger company than for smaller one .
The method is helpful to increase the production of the company , and thereby the profit of the company increases .
Hence , from the given scenario of the question ,
The correct answer is B. Broad differentiation strategy .
