Strawline, Inc. manufactures straws using blown-film extruders. Strawline is planning to purchase a new machine which is based on a new technology. Before making this purchase, however, the company wants to perform a demand/supply analysis as recommended by Porter. Which of the following is least likely a component of a demand/supply analysis?

A) Impact of changes in the national taxation policy.

B) Prospect of a foreign competitor entering the industry.

C) Historical relationship between gross domestic product (GDP) growth and the growth in company revenues.

Which of the following factors would NOT be considered while an analyst is performing an industry demand and supply analysis?

A) Impact of changes in the national taxation policy.

B) Prospect of a foreign competitor entering the industry.

C) Historical relationship between gross domestic product (GDP) growth and the growth in company revenues.

In an industry analysis, the analyst must assess future demand for the industry’s output. Which of the following would NOT be an appropriate method for assessing future demand?

A) Incorporate external forces such as government action into demand forecasts. For example, changes in fiscal policy might increase or decrease demand in a certain industry.

B) Assuming that gross domestic product (GDP) growth for the country will approximately equal sales growth for the industry.

C) Study the inputs and outputs of a given industry. Often the output of one industry is the input for another.

Which of the following factors would least likely be considered while an analyst is performing an industry demand and supply analysis?

A) Short-term imbalances between demand and supply.

B) Availability of property and casualty insurance coverage in the event plant capacity in the industry is affected by natural disasters such as earthquakes and floods.

C) Extent of foreign imports.