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3. In most cases, the seller’s standings in the market are
more preferable than the buyer’s standings.
4. If the competition agents support a competitive envi-
ronment in this segment of the market, the competition is at-
tractive.
5. During a price competition, the product competitive-
ness stock rises.
Give definition to the following concepts:
1) goods competitiveness stock for the supplier;
2) business competitiveness;
3) competition;
4) the compensation principle for firms;
5) a firm.
Variant 2
Answer the questions:
1. What characteristic feature of the goods do we deal
with if the answers to both the positive and negative questions
show indifference?
2. What balances the individualistic character of a market economy?
3. In what way is the competitive mechanism flexibility
shown?
4. How to calculate the profitability of final products (a
formula)?
5. What does the cross-industry competition lead to?
6. In what cases can the price competition be applied
nowadays?
7. List the main functions of a firm.
8. In what way is the sales volume within a monopolistic
competition defined?
9. What causes a functional competition?
10. What can reduce the consumer's costs (4 factors)?
251
11. List the basic principles of assessing product com-
petitiveness.
Say whether the statement is true or false. Give your
reasons:
1. The fundamental niche is mainly affected by the in-
dustry in which the firm operates.
2. Low demand forces firms to compete with each other.
3. Competing firms are those firms having similar niches.
4. By reducing the price, the producer increases a goods
competitiveness stock.
5. The sales price of a competitive good is lower than its
consumption value.
Give definition to the following concepts:
1) goods competitiveness;
2) fundamental market niche;
3) the principle of "an invisible hand";
4) the principle of goods compensation;
5) the consumption value of goods.
TEST 2
Variant 1
Answer the questions:
1. Name the key characteristics of enterprises at the op-
erational level of managing competitiveness.
2. Can the emergence of a big company and its transition
to an oligopolistic state be followed by an increase in its performance?
3. How do giant firms generally achieve their aim to
press the market?
4. What provides a high consumer value of goods within
the strategy of patient firms?
5. What is the fundamental strength reservoir for large
companies within standard production?
252
6. What are the competence centres of firms?
7. For what is Hinterkhuber's matrix "Competitiveness
(value) of production" used?
8. What is the idea of the tactics "the second but crafty"?
9. What is the idea of Veblen's effect?
10. In what way is a diseconomy of scales revealed?
11. How to explain the phenomenon of an amazing stability of major corporations?
List benefits from product differentiation (three ones).
1. Name three major factors that make the leading firms
successful in their fight against their followers.
2. What is a proper pricing policy for patient firms?
3. What is the idea of the market share maximizing
principle?
4. What types of pricing policies are the signs of the de-
fensive strategy of a violent firm or even of its weakness?
5. Show graphically the demand distribution (depending
on the price/quality of goods.
6. What will happen if some mass demand segments stay
unoccupied by the production leaders?
Variant 2
Answer the questions:
1. What is the formula of business competitiveness
through both profitability and a market share.
2. What helps small and medium businesses to fight
against the leaders?
3. What is one of the main problems for the strategy of
patient firms?
4. Is it true that the violent firm cannot be guided by the
local or accidental demand?
5. What helps to cope with a loss of production efficien-
cy within the strategy of patient firms?
253
6. What productions are usually incorporated into the
structure of the strategic centre of a firm?
7. Define the notion of diversification (for a firm).
8. What are the two main dangers for a firm operating
within the strategy of patient firm?
9. In what case a diseconomy of scales happen?
10. In what way are the standings of "vice-leaders" con-
tradictory?
11. What can be the basis for differentiating goods according to the qualitative parametres?
12. At what stage of the development does a violent firm
receive an increased stability?
13. List the main functions of a firm.
14. What factors (three ones) provide the stability of vio-
lent firms?
15. Name a proper pricing policy for a violent firm.
16. What is the idea of "the predatory price policy"?
17. What strategy uses "the policy of deep market pene-
tration"?
18. In what market segments does the base for the de-
velopment of a focused production appear?
TEST 3
Variant 1
Answer the questions:
1. What does the principle of "an invisible hand" de-
scribe in Economics?
2. The consumption value of new goods is usually very
high. Why?
3. Is it right that gradual innovation resistance is stronger
than radical innovation resistance.
4. Name new types of resources combinations according
to J. Schumpeter (at least four of them).
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5. What is the difference between the early and late majorities while making a purchase (Rogers's distribution)?
6. The motivation of exploring firms is strong and multi-
dimensional. Why?
7. What is the sense of the policy of "bonus margins"?
8. List individualistic characteristics of a market econo-
my (at least four of them).
9. What is to be done if the value of production is im-
portant for the firm and its operation, but capacities to compete
are low (Hinterhuber 's matrix)?
10. What is the idea of the theory of "comparative advantages" (Riccardo)?
11. Name internal factors threatening national economic
interests (at least three of them).
12. What are the demonopolization and competition pro-
motion tendencies in the Republic of Belarus (no less than 3)?
Variant 2
Answer the questions:
1. Does the innovation resistance (according to
J. Schumpeter) results from the efficiency of market forces?
2. The motivation of exploring firms is strong and multi-
dimensional. Why?
3. Is it true that gradual innovations are more attractive
to violent firms, than to exploring firms?
4. Name the stages of the strategic development of ex-
ploring firms.
5. At what stage (in Rogers's distribution) is there a need
for a sharp expansion of capacities?
6. The consumption value of new goods is usually very
high. Why?
7. What is the idea of the showing-off policy?
8. Name the two directions of the development of patient
firms that avoided merging.
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9. What is to be done if competitiveness capacities are
high, and the value of production for the firm’s activity is not
low (Hinterhuber matrix)?
10. What is the idea of "the national rhombus" theory?
Name four determinants of competitive advantages of a country.
11. Name external factors threatening national economic
interests (at least three of them).
12. What does the concept of "a lawful monopoly" mean
(by the Belarusian legislation)?
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APPENDIX G
FINAL TEST
Variant 1
Answer the questions:
1. Describe the features of the activity management un-
der the conditions of breakthrough R&D (the managerial type,
the project monitor, the best form of personnel management).
2. List the characteristics of local needs (4 items).
3. Describe a traditional commutant firm (benefits and
distinctive features).
4. Name the main problems of the privatization in Belarus (at least three of them).
5. Name the main problems of the innovative business
development in Belarus (at least three of them).
6. In what cases is the activity of market leaders forbidden?
7. Name the positive effects of transnational corporations
on the economy of receiving countries (at least three of them).
8. What is the "quasi-stability" of market conditions?
9. Name the key characteristics of enterprises at the op-
erational level of the competitiveness management.
10. Give some examples of domestic enterprises using:
a) the strategy of violent firms; b) the strategy of patient firms.
11. Rogers's distribution: plot x versus y; and describe
the practical importance of the model.
Say whether the statement is true or false. Give your
reasons:
1. The consumption of each competitive product is higher than its selling price.
2. If both the objective and subjective qualities are low,
it shows an "information deficit".
3. The compensation principle can be applied only to the
goods made by the company.
257
4. Some transnational corporations are economically
much stronger than many states of the world.
Define the following concepts:
1) privatization;
2) conditionally fixed costs;
3) diversification.
Variant 2
Answer the questions:
1. Describe the features of the activity management un-
der the conditions of gradual R&D (the managerial type, the
project monitor, the best form of personnel management).
2. Rogers's distribution: name five primary groups of
consumers, and describe the practical importance of the model.
3. Name the four main benefits of a small firm.
4. Describe a commutant firm-supplier (benefits and
shortcomings):
5. Belarus keeps high chances of a profitable privatization nowadays. Why? (give a few reasons).
6. What body exercises a state control over the performance of the antitrust law in Belarus?
7. Name the three main signs of transnational corporations.
8. Name negative effects of transnational corporations on
the economy of receiving countries (at least three of them).
9. What does the notion of "irrational demand" mean?
10. Why counterparts have low chances for success
when attacking the leader?
11. Give a few examples of domestic enterprises using:
a) the strategy of violent-firms;
b) the strategy of patient firms.
Say whether the statement is true or false. Give your
reasons:
1. Risks of investments confiscation is one of the problems for the country exporting the capital.
258
2. While making a purchase, most buyers are guided by
the criterion "price/quality".
3. If both the objective and subjective qualities are high,
it shows some "technical and information advancing".
4. To gain profit is the first point to arise if an enterprise
is managing its competitiveness.
To give definitions to the following concepts:
1) privatization;
2) conditionally fixed costs;
3) a morphological analysis.
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