Guanxi Is an Important Mechanism for Building Long-Term Business Relationships

question 54

True/False

Guanxi is an important mechanism for building long-term business relationships and getting business done in China.

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Definitions:

Cost to Sellers

The total expenses that a seller has to bear to produce and sell a product, including production, marketing, and distribution costs.

Increase in Demand

A situation where more consumers are willing to purchase a product at a given price, often due to changes in income, tastes, or the price of related goods.

Decrease in Demand

A decrease in demand refers to a fall in the quantity of a product that consumers are willing and able to purchase at various prices, typically leading to a downward shift in the demand curve.

Peanut-Growing South

Refers to regions in the Southern United States that are prominent in the cultivation and production of peanuts.