COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES

Week No: (6 - 9)
Trimester: 3rd AY 2020/2021
FORMATIVE ASSESSMENT NO: _2_

COURSE CODE BSIB531 COURSE TITLE GOLOBAL BUSINESS

SECTION FB TIME DAYS THD ROOM
STUDENT NAME ID NO.
TEACHER’S NAME DATE

TOPIC INTERNATIONAL BUSINESS THIORIES

ACTIVITY TITLE CRITICALLY ANALYZE THE INTERNATIONAL BUSINESS MARKES AND TRADE

ACTIVITY This is an individual activity given to the students to do independently and

DIRECTION & submit their answer on due date.
REQUIREMENT/ Guidelines:
S  Write a cover page, including the name of University, subject code and
name.
 Answer in A4 paper.
 Try to answer the question based on critical thinking given from the case
study in the class.
 Submission via Moodle.
Question: Analyze the following statements:
 LIST two theories for how and why some firms perform better
than others?
 EVALUATE the competitive threat of substitute products.

ACTIVITY
OUTPUT
1.Two such theories are,

A.Economies of scale, which claims firms achieve opportunities to garner greater

profits, if the average cost of production is decreasing with greater level of
production.This opens scope for competitive advantage to be achieved .

B.First mover advantage.

A case often observed, in oligopolistic market's, it's the case where market leader
makes his choice first and after which followers observe and make their choices
of output. This has been seen to bring greater profits for the market leader.

Prepared by : Reviewed Checked by: Approved by:

1

Dr. Ahmed Al buainain Dr. Cecilia Lagaras Dr. Vinodh Natarajan Dr. Marluna Lim Urubio
Faculty Member Programme Head Associate Dean College Dean
Date : Date: Date : Date :
 COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week No: (6 - 9)
Trimester: 3rd AY 2020/2021
FORMATIVE ASSESSMENT NO: _2_

COURSE CODE BSIB531 COURSE TITLE GOLOBAL BUSINESS

SECTION FB TIME DAYS THD ROOM
STUDENT NAME ID NO.
TEACHER’S NAME DATE

2.The presence of substitute in goods affect the demand for product's. Generally
as the price of substitute are lowered it has been observed that the demand for
the, respective good also faces a low demand, as consumers tend to shift
preferences away. This can be better explained in the case of monopolistically
competitive market where there's gain in the short run.However, in the long run,
a down shift of demand result in profit be zero.Because now, more and more
close substitute are available.

Companies are concerned that substitute products or services may displace their
own. The threat of substitution is high when rivals, or companies outside the
industry, offer more attractive and/or lower cost products. Buyers then have the
opportunity to make a performance/price trade-off. The cost of switching is also a
factor. If it is high, the threat of substitution is low.
Questions to ask include:

 Is it easy for consumers to switch to another product/service?

 What are the major substitute products?
 What are the trends in market share of the product and its substitutes?
 What are the growth rates?
 What are the price/value characteristics?
 Are consumer preferences or consumer demographics changing?

FACULTY

Prepared by : Reviewed Checked by: Approved by:

2

Dr. Ahmed Al buainain Dr. Cecilia Lagaras Dr. Vinodh Natarajan Dr. Marluna Lim Urubio
Faculty Member Programme Head Associate Dean College Dean
Date : Date: Date : Date :
 COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week No: (6 - 9)
Trimester: 3rd AY 2020/2021
FORMATIVE ASSESSMENT NO: _2_

COURSE CODE BSIB531 COURSE TITLE GOLOBAL BUSINESS

SECTION FB TIME DAYS THD ROOM
STUDENT NAME ID NO.
TEACHER’S NAME DATE

FEEDBACK

Prepared by : Reviewed Checked by: Approved by:

3

Dr. Ahmed Al buainain Dr. Cecilia Lagaras Dr. Vinodh Natarajan Dr. Marluna Lim Urubio
Faculty Member Programme Head Associate Dean College Dean
Date : Date: Date : Date :