One Reason American Business Must Be Concerned About Product Safety

question 10

Multiple Choice

One reason American business must be concerned about product safety is that

• A) labor unions will demand better contracts.
• B) the government will increase its requirements for disclosure.
• C) consumers demand safe products.
• D) companies will be banned from competing.
• E) limitations will be placed on the sale of products.

Identify factors influencing the success of international strategic partnerships and alliances.

Understand the influence of national culture dimensions on leadership and management practices in a global context.

Identify and describe the dimensions of national culture according to Geert Hofstede.

Understand the concept of international labor relations.

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Definitions:

Moral Hazard

Moral Hazard refers to situations where one party is more likely to take risks because the negative consequences of their actions are borne by another party.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable participants in a contract or agreement, often seen in insurance and financial markets.

Bank Deposits

Funds that customers place into banking institutions for safekeeping and to earn interest.

Asymmetric Information

A situation in markets where one party in a transaction has more or superior information compared to another.