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A Firm Granting Lifetime Employment to Its Workers Has the Incentive

question 161

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A firm granting lifetime employment to its workers has the incentive to engage in international dumping during periods of business recession and excess production capacity.


Definitions:

Diversification

A growth strategy to expand by acquisition of or investment in new and different business areas.

Complexity

The state or quality of being intricate or complicated.

Diversification Strategy

A business policy of increasing the variety of products or markets served to spread risk and create opportunities for growth.

Business Area

A specific segment of a business organization that focuses on a particular market or product line.

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