The reward/need satisfaction theory of relationship proposed by Byrne & Clore (1970) asserts that if a relationship is seen to offer the prospect of reward (for either party), it is more likely to form – if there is little or no perceived reward, the relationship does not form. Their model is based on the behaviourist principles of operant and classical conditioning. According to the former, behaviour that results in a beneficial outcome makes repetition of this behaviour more likely, whereas if the outcome is undesirable, the behaviour is less likely to be repeated or continued. A relationship that brings perceived advantages is a case of positive reinforcement but the relationship can also be characterised by negative reinforcement if the
It is recommended that both parties in a negotiation should establish their starting, target, and resistance points before beginning a negotiation. The spreads between the resistance points or the bargaining range, settlement range, or zone of potential agreement, are very important. This is where actual bargaining takes place. When the buyer's resistance point is above the seller's, he or she is minimally willing to pay more than he or she she is minimally willing to sell for; there is a positive bargaining range. The target point is a CMI’s optimal goal, or the point at which he would like to conclude negotiations.
CanGo needs to do a SWOT analysis in order to identify where they are strong and where they are vulnerable. To do a SWOT analysis CanGo needs to ask themselves the following for each section: STRENGTHS: What advantages do we have? What do we do better than anyone else? What unique or lowest-cost resources can we draw upon that others can't? What do people in their market see as our strengths?
What theory of profit best reflects the performance of the plasma screen makers? 2 To reduce Agency Problems, executive compensation should be designed to: Correct Answer: create incentives so that managers act like owners of the firm. 3 Economic profit is defined as the difference between revenue
Define the price elasticity of demand and show how it is calculated. Answer: The units-free measure of the responsiveness of the quantity demanded of a good to a change in it s price when all other influences on buying plans remain the same. 3. What is the total revenue test? Explain how it works.
(TCOs 4 and 8) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal? (Points : 4) Kanban Just-in-time system MRP Least unit cost Least total cost Question 9. 9. (TCO 3) When considering outsourcing, what should firms be sure to avoid? (Points : 4) Losing control of noncore activities that don't distinguish the firm Allowing outsourcing to develop into a substitute for innovation Giving the outsourcing partner opportunities to become a strong competitor Allowing employees transferred to the outsourcing partner to rejoin the
Prices influence what consumers want and how they are regulated. Team B also learned about a market where economic forces function unrestrained, also known as the perfectly competitive market according to Colander (2010).
C. status fulfillment. D. utility. 3. When economists say that people act rationally in their self interest, they mean that individuals: A. look for and pursue opportunities to increase their utility.
If they are out of season and output is down, less help is needed so layoffs will occur. Next you want to make sure your company is well respected based on the moves you make. Government plays an important role in the economy. By manipulating the arsenal of tools within a fiscal policy, the government can either speed up or slow down the economy depending upon what issues needs to be addressed socially and economically. By completing this simulation I have learned how decisions relating to fiscal policy can affect the economy.
Incentives: The Roots and Core of Economics Economics is a social science that analyzes how society produces, distributes, and consumes its resources such as goods and services. The tools of economics can be easily applied to subjects of everyday life. According to Steven D. Levitt in his Freakonomics, economics at its root is essentially the study of incentives: something that induces people to act. Levitt illustrates that economic, and even social and moral decisions, are made by comparing the costs and benefits of incentives. Incentives are offered to people in order to induce them to make certain choices or behave in a certain way.