Description
Question 1: Read the Chapter 8 Mini-Case: An International Strategy Powers ABB’s Future
Respond to question 3: Why has ABB used acquisitions and joint ventures as dominant entry modes in international markets?
Question 2: Please answer one of the following questions:
What would have to be on the line for you to “blow the whistle” at work? How would you go about it? What if your employer offered to “settle” with you prior to going public?
Or
Research a story about a whistleblower. Relate what your whistleblower did with the seven steps recommended in this chapter. What can you take away from this analysis?
Question 3 : Market Structure Review Questions
Answer the following questions based on the video you just watched
1. Which market structure(s) will have zero economic profits in the long run?
2. Which market structure(s) will be a price maker and have barriers to entry?
3. There are currently 8 firms in a particular market. There firm sales are given in the table
below. What is the four-firm concentration ratio for this industry? Would you classify it as an
oligopoly?
Firm Sales
1 $1,000
2 $1,500
3 $2,000
4 $2,500
5 $3,000
6 $1,000
7 $500
8 $2,500
4. Although market structures vary widely in their characteristics, what is one common aspect
among all of them? Does your previous answer have any potential calculation?
5. In the long run, which market structures are likely to have their average cost curve just sit on
top of their demand curve? What does this imply for each market structure? Are there any
differences in the market structures you gave in your previous answer?
6. What market structure(s) are likely to cause a net loss to societal welfare?
