Which of the following describes an effect of the increased competition caused by the globalization of production and markets in an industry?
A) A company must face rivals not only on the domestic, but also on the foreign front.
B) There has been a change from consolidated oligopolies to smaller fragmented, global industries that battle each other for market share.
C) It has increased both the threat of entry and the intensity of rivalry within many formerly protected national markets.
D) The threat of decreased profitability has caused companies to focus on efficiency, quality, customer responsiveness, and innovative ability.
E) All of these are effects of the increased competition caused by the globalization of production and markets in an industry.

Question

Quizplus · Accepted Answer

All of the choices describe effects of increased competition caused by the globalization of production and markets in an industry. A company must face rivals not only on the domestic, but also on the foreign front (A). There has been a change from consolidated oligopolies to smaller fragmented, global industries that battle each other for market share (B). It has increased both the threat of entry and the intensity of rivalry within many formerly protected national markets (C). The threat of decreased profitability has caused companies to focus on efficiency, quality, customer responsiveness, and innovative ability (D). Therefore, option E is the correct answer.

Which of the Following Describes an Effect of the Increased