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49) John signed a two year contract with AT&T to get a reduced price on his new iphone. He has had AT&T service for only 6 months and has been dissatisfied with AT&T service so he would like to switch to Verizon. However, cancelling his AT&T contract will cost him $250. Which of the following characteristics of a powerful supplier group does AT&T have with respect to their contract with John? (A) The supplier industry is more concentration than the industry it sells to (B) Industry participants face switching costs in changing suppliers (C) Suppliers offer differentiated products (D) No substitutes exist for what the supplier group provides

50) An IT firm I earns that skilled programmers are available in India for wages far below what is typically paid in the US. The firm decides it is a good idea to outsource its programming to India. Which of the following describes the reason this IT firm pursued international diversification? (A) To enter new markets (B) To take advantage of economies of scale (C) To take advantage of local factors (D) None of the above

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