When a Firm Makes a Choice About Foreign Operations, It

question 55

Essay

When a firm makes a choice about foreign operations, it is a trade-off between local responsiveness and global efficiency.Explain.

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Definitions:

Low-ball Technique

A persuasion tactic in which an initially favorable deal is later altered to become less favorable to the individual who agreed to it.

Foot-in-the-door Technique

A persuasion strategy in which agreement to a small, initial request increases the likelihood of compliance with a larger, later request.

Door-in-the-face Technique

A persuasion strategy where a large, unreasonable request is made first and, if refused, a smaller, more reasonable request is made.

Social Loafing

The occurrence in which people put in less effort towards reaching a goal while working as part of a team compared to when working by themselves.