Final answer:
Equal Exchange needs to assess market structures, specialization, monopolistically competitive factors, and the impacts of trade and exchange rates to enhance strategic competitiveness and profitability.
Step-by-step explanation:
To determine how Equal Exchange can increase its strategic competitiveness and earn above-average returns, it must evaluate several key aspects of its business. This includes assessing its market structures, specialization efficiencies, impact of monopolistically competitive factors, and how trade and exchange rates affect its operations. By understanding its comparative advantages in the marketplace, Equal Exchange can leverage specialization where it has a lower cost of production. Additionally, it should consider the long-run equilibrium challenges inherent to monopolistically competitive industries, which may affect the demand for its products. An in-depth analysis of these factors will help inform strategic decisions that could lead to increased competitiveness and profitability.