Business Environment

Topics: Economics, Monopoly, Perfect competition Pages: 4 (964 words) Published: April 17, 2013
Business Environment
Section 1
A1) The major achievements of China’s Huawei Technologies in the areas of its specialization are that they won the contract to build Norway a fourth generation (4G) mobile network, the deal was the largest so far for the new LTE technology in Europe making it a milestone for Huawei. The report by research firm Ovum found Huawei was the undisputed leader in the telecom optical equipment market. Huawei and fellow Chinese firm ZTE, it said, are the only two vendors to increase optical infrastructure revenues during the third quarter. Huawei and ZTE are seen to be bucking the trend because they are benefiting the most from the frantic roll out of new transport networks in their domestic market. A2) Asian players are beginning to dominate networking space, just as they are doing in the PC business. In the global PC market too, Asia dominates with Taiwan’s Acer, China’s Lenovo and Japan’s Toshiba in the second, fourth and fifth positions. A3) The steps I feel that India needs to adopt to stay ahead of China are to improve their market, improve their infrastructure and their selling ways. It is very important that they improve their strategy also.

Section 2
Perfect Competition
A1) Perfect competition is a theoretical market structure. It is primarily used as a benchmark against which other market structures are compared. The industry that best reflects perfect competition in real life is the agricultural industry. Monopolistic Competition

Monopolistic competition differs from perfect competition in that production does not take place at the lowest possible cost. Because of this, firms are left with excess production capacity. This market concept was developed by Chamberlin (USA) and Robinson (Great Britain). Oligopoly

The retail gas market is a good example of an oligopoly because a small number of firms control a large majority of the market. Monopoly
A situation in which a single company or group owns all or nearly all of the...
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