An industry where only a few suppliers exist, each with a large share of the market, is called an oligopoly market. Typically, these firms are fairly large, and often require a high investment of financial capital to enter the market. Therefore, entry into the market is restricted.

The correct answer is E. 

Economies of scale is the cost advantage that arises with increased output of a product.

Cultural relativism refers to the approach suggesting that a country’s own unique culture, laws, and business practices determine ethical behaviors in the country.

The correct answer is D.

Middle management:

Division head, Plant manager, Dean

In international business environment there are many appeals and advantages of strategic alliances. These are listed below:

• Better access to feasible countries from host country to import and market products/services.

• Capture economies of scale.

• Fill missing information in technical expertise of local markets.

• Share distribution facilities and dealer network.

• Take advantage of partner’s local market knowledge and networks.

• Combine competitive energies toward defeating mutual rivals.

  Under some circumstances, there would be pitfalls of strategic alliances such as:

• To overcome language and cultural barriers.

• To deal with diverse or conflicting operating practices of partners.

• To consume time for managers in terms of communication, trust building and coordination

  costs.

• To create mistrust when collaborating in competitively sensitive areas.

• To clash in egos and company cultures.

• To deal with conflicting objectives, strategies, corporate values, ethical standards.

• To become too dependent on another firm for essential expertise in the long term.

Balance of trade (BOT) is the difference between a country’s imports and its exports for a given time period.

Corporate social responsibility (CSR) is the concerns and obligations businesses have for the welfare of their stakeholders and the larger society. CSR goes beyond being ethical, beyond what is required by law and beyond the pursuit of profits. The obligations of businesses are often described by their commitments to various stakeholders such as customers, employees, investors and communities.

The correct answer is A.

Every firm operates within a particular market environment in which revenues are obtained. In the market environment, companies interact with customers, employees, suppliers and competitors. Customers expect to receive value from a firm’s products. This means that a firm should offer products that have certain level of quality, at reasonable prices along with good customer service compared to its competitors’ products and customer service. Companies should establish close relationships with their suppliers because product quality, price and timeliness of delivery depend on material resources provided by suppliers.

Employees are very important in helping firms to become more effective. Frontline workers (those who have direct contacts with customers such as salespeople) should be given responsibility, authority, and freedom to do their jobs in order to quickly meet customers’ needs and expectations, i.e. to empower employees. In the market environment, firms need to be able to compete effectively and to distinguish themselves from their competitors to drive enough revenues for their survival and to prosper.

The correct answer is C.