Deck 12: Foreign Entry Strategies

Question 1

Explicit collusion involves competitors directly communicating with each other to influence the nature of competition in ways that benefit both of them.

Answer 1

True

Question 2

An oligopoly is a market structure with only a small number of competing firms.

Answer 2

True

Question 3

Scenario analysis is a technique of looking into the past that is particularly useful in non-volatile environments.

Answer 3

False

Question 4

Adam Smith's said 'People of the same trade seldom meet together, even for merriment and diversion, … but their conversation often ends in a conspiracy against the public.' What sort of behaviour was he referring to?

A)competitive dynamics
B)tax dodging
C)collusion
D)prisoners' dilemmas

Question 5

Leniency programmes by competition authorities create incentive to report illegal collusion which a company has become involved in.

Question 6

Which of the following practices is not penalized by the European Union as a competition authority?

A)fixing prices
B)entering another EU country without agreement of national authorities
C)anti-competitive practices by a dominant player in a market
D)agreements between two companies not to compete in each other's home market

Question 7

A 'blue ocean' strategy aims to attack competitors without direct confrontation with incumbents.

Question 8

Sun Tzu's quote 'if you know the enemy and know yourself, your victory with stand in no doubt' points to the importance of:

A)competitor analysis and resource analysis
B)analysis of institutions and resources
C)analysis of political parties against and for capitalism
D)analysis of suppliers and customers

Question 9

Competitors are likely to strongly launch a counter attack if:

A)they are aware of the original attack
B)they are motivated to counterattack
C)they have the capabilities to launch a successful counterattack
D)all the three conditions mentioned above are present at the same time
E)none of the conditions is present

Question 10

Prisoner's dilemma is a concept from game theory that helps explaining why cartels often work effectively.