Question
An account of the difficulties of Japanese mobile phone manufacturers argues that these firms made a mistake by concentrating on selling in high-income countries while
An account of the difficulties of Japanese mobile phone manufacturers argues that these firms made a mistake by concentrating on selling in high-income countries while making little effort to sell in low-income countries: The main growth in the wireless industry overall is in emerging markets, which need cheap phones. The world's top three makersNokia, Samsung and Motorolafocus on this segment. . . . Japanese firms are caught in a vicious circle: because they are not selling to poor countries, their volume stays low, which keeps prices high, which makes selling to poor countries infeasible. 6 Why would the price of Japanese mobile phones be high because Japanese firms are producing these phones in low volumes? Use a graph to illustrate your answer.(
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