Cost Cutting in International Operations Can Take Place Because Of

question 133

Multiple Choice

Cost cutting in international operations can take place because of:

• A) lower taxes and tariffs.
• B) lower wage scales.
• C) lower indirect costs.
• D) less stringent regulations.
• E) all of the above.

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Definitions:

Best Response

In game theory, it is the strategy that yields the highest payoff for a player, given the strategies chosen by other players.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of all other players, resulting in no incentive for unilateral shifts.

Game of Chicken

A game theory model where two players head towards each other on a collision path; the one who swerves is considered 'chicken,' but if neither swerves, both face disastrous outcomes.

Simultaneous Game

A scenario in game theory where all players make their decisions at the same time without knowledge of the other players' choices.