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In Ghemawat's "Aggregation,Adaptation,Arbitrage" Framework,the Potential for a Multinational Enterprise to Exploit

question 14

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In Ghemawat's "Aggregation,Adaptation,Arbitrage" framework,the potential for a multinational enterprise to exploit arbitrage benefits are likely to be greater in a capital-intensive industry than in a labor-intensive industry


Definitions:

Distributive Negotiation

Negotiation in which each party makes claims for certain preferred outcomes.

Win-Lose Claims

Situations or assertions in which one side gains what the other side loses, typically in disputes or negotiations.

Minimum Reservation Point

is the lowest or least favorable outcome one is willing to accept in a negotiation or deal.

Maximum Reservation Point

The highest price a consumer is willing to pay for a good or service, beyond which they will choose not to purchase it.

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