Firms faced with price controls can take any of the following strategies EXCEPT:
A) shift the target segment or markets.
B) launch new products or variants of existing products.
C) negotiate with the government.
D) predict the incidence of price controls.
E) have the home government bring pressure on the host government.

Question

Quizplus · Accepted Answer

The strategy of having the home government bring pressure on the host government is not a feasible option for firms to undertake as it involves diplomatic and political interventions, which are beyond the control of firms. The other strategies, i.e., shifting the target segment or markets, launching new products or variants of existing products, negotiating with the government, and predicting the incidence of price controls are viable options that firms can undertake to handle price controls.

Firms Faced with Price Controls Can Take Any of the Following