WGU; C200; Global Economics; Chapter 11 questions
with verified answers
A Middle Eastern cosmetics company focused on regional sales is facing
increasing competition from European and American cosmetics firms. In
response, it refines its products and advertising messaging to emphasize its close
ties to Middle Eastern cultural norms and values. This is an example of a(n):
a. dodger strategy.
b. defender strategy.
c. extender strategy.
d. contender strategy. Ans✓✓✓ defender strategy.
Beyond the enforcement of antitrust laws, collusion often fails because:
a. collusion is inherently wrong and unethical.
b. colluding parties refuse to accept lower profits.
c. it has incentive problems associated with the "prisoners' dilemma."
d. colluding parties do not like each other. Ans✓✓✓ it has incentive problems
associated with the "prisoners' dilemma."
Facing strong competition from MNE cosmetics firms, an Israeli firm focused on
products with unique components extracted from the Dead Sea that couldn't be
found in other parts of the world. This is an example of:
a. contender strategy.
b. extender strategy.
c. defender strategy.
d. dodger strategy. Ans✓✓✓ defender strategy.
, Firms in a multimarket competitive situation might want to avoid engaging in
cross-market retaliation because:
a. all of these answers
b. they fear getting caught in illegal activity.
c. it opens the door for foreign entrants to gain a foothold.
d. a price war may be too costly for all involved. Ans✓✓✓ a price war may be too
costly for all involved.
How do firms create value when engaging rivals?
a. Launch products in multiple markets.
b. All of these
c. Hold a dominant position in key markets.
d. Secure patents on key products. Ans✓✓✓ All of these
If a country's competition and antitrust policies are pro-incumbent and pro-
producer, which of the following is a likely outcome?
a. There will be many international competitors in each market segment.
b. The country will be subject to heavy trade embargoes from other countries.
c. Domestic consumers will most likely pay high prices.
d. There will be few competitors in each market segment. Ans✓✓✓ Domestic
consumers will most likely pay high prices.
If Google and Microsoft were to propose a joint venture to develop a new
internet search engine, the US government would block them based on:
a. Bankruptcy law.
b. Antitrust law.
with verified answers
A Middle Eastern cosmetics company focused on regional sales is facing
increasing competition from European and American cosmetics firms. In
response, it refines its products and advertising messaging to emphasize its close
ties to Middle Eastern cultural norms and values. This is an example of a(n):
a. dodger strategy.
b. defender strategy.
c. extender strategy.
d. contender strategy. Ans✓✓✓ defender strategy.
Beyond the enforcement of antitrust laws, collusion often fails because:
a. collusion is inherently wrong and unethical.
b. colluding parties refuse to accept lower profits.
c. it has incentive problems associated with the "prisoners' dilemma."
d. colluding parties do not like each other. Ans✓✓✓ it has incentive problems
associated with the "prisoners' dilemma."
Facing strong competition from MNE cosmetics firms, an Israeli firm focused on
products with unique components extracted from the Dead Sea that couldn't be
found in other parts of the world. This is an example of:
a. contender strategy.
b. extender strategy.
c. defender strategy.
d. dodger strategy. Ans✓✓✓ defender strategy.
, Firms in a multimarket competitive situation might want to avoid engaging in
cross-market retaliation because:
a. all of these answers
b. they fear getting caught in illegal activity.
c. it opens the door for foreign entrants to gain a foothold.
d. a price war may be too costly for all involved. Ans✓✓✓ a price war may be too
costly for all involved.
How do firms create value when engaging rivals?
a. Launch products in multiple markets.
b. All of these
c. Hold a dominant position in key markets.
d. Secure patents on key products. Ans✓✓✓ All of these
If a country's competition and antitrust policies are pro-incumbent and pro-
producer, which of the following is a likely outcome?
a. There will be many international competitors in each market segment.
b. The country will be subject to heavy trade embargoes from other countries.
c. Domestic consumers will most likely pay high prices.
d. There will be few competitors in each market segment. Ans✓✓✓ Domestic
consumers will most likely pay high prices.
If Google and Microsoft were to propose a joint venture to develop a new
internet search engine, the US government would block them based on:
a. Bankruptcy law.
b. Antitrust law.
