GRADED A+ | 100% VERIFIED ANSWERS | EXAM HIT LIST + STRATEGY
QUICK EXAM HIT LIST:
• VRIO Framework
• Porter’s Five Forces
• Global vs Transnational Strategy
• Guanxi & Networking
• Dumping & Anti-dumping Laws
• Stages vs Born Global Model
• Collusion & Industry Structures
• Local vs Global Responsiveness
• Entry Strategies & MNE Structures
• Corporate Governance & Strategic Alliances
QUESTION 1: Why do price wars erupt in industries like autos but not in the diamond industry?
Definition:
Price War – A competitive battle where firms reduce prices to gain market share.
Causes:
• Low product differentiation
• Slow market growth
• Overcapacity
Industry Comparison:
Industry Price Wars Likely? Why?
Automobiles Yes Generic offerings, price-sensitive buyers
Diamonds No High perceived value, exclusivity
Example:
Swatch avoided price wars by branding itself as a fashion icon.
Strategy to Win:
• Differentiate (e.g. features, branding)
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, • Cut costs via outsourcing
• Trim product lines, sell in bundles
QUESTION 2: Is investing in micro-financing risky in developed economies?
Case Study: Muhammad Yunus, Nobel Peace Prize Winner
Pros:
• Enables income for the poor
• Builds financial credibility
• Accessible without collateral
• Reduces poverty
Cons:
• No collateral → Higher interest rates
• Exploitation by rich
• Unviable or misused business ideas
• Poor awareness in remote regions
QUESTION 3: Would you file an antidumping case against foreign competitors?
Definition:
Dumping – Selling below cost abroad to eliminate local competitors.
Reasons to File:
• Recovers market share
• Domestic job protection
• Likely to win with legal backing
Risks:
• Legal costs
• Customer backlash (price hikes)
• Damaged industry relations
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