Computermatix,a Small Canadian Exporter Operating in Romania,was Unhappy with the Romanian

question 32

Multiple Choice

Computermatix,a small Canadian exporter operating in Romania,was unhappy with the Romanian government's decision to revoke its five-year tax holiday for export-oriented foreign investors.The regulation was very important to the firm,but they knew that their bargaining power was low relative to the Romanian government since they were such a small company.The best strategies for Computermatix to employ to manage this regulatory change would either be to ____ or ____.

• A)alter;avoid
• B)ally;accede
• C)ally;avoid
• D)alter;accede

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, and vice versa.

Optimal Consumption

The combination of goods and services that provides the highest level of satisfaction to an individual, given their income and the prices of those goods and services.

Prices Constant

An assumption in economic analysis that prices remain unchanged over a specific period, allowing for the examination of other variables' effects without price fluctuations.

Diminishing Marginal Rate

The principle that as the quantidade of a variable input increases, with all other inputs fixed, a point will be reached where the additions to output will begin to decrease.