Scenario: Stephanie Wong Chinese-American Stephanie Wong Owns a Consulting Business That Advises Clients

question 147

Multiple Choice

Scenario: Stephanie Wong
Chinese-American Stephanie Wong owns a consulting business that advises clients as they expand into China. Wong is preparing to lead a symposium on entering China for small and mid-sized exporters and is preparing by answering the following questions that symposium participants might ask.
-What is more important, contacts or contracts?

• A) Contracts are critical because of their extreme importance in Chinese business.
• B) Face-to-face communications and personal relationships take priority over written contracts.
• C) Non-Chinese businesspeople should take time to agree on a legal contract before developing personal relationships.
• D) Business relationships come with time and are established only after successful legal dealings are concluded.

---

Definitions:

Price Fix

A practice where businesses agree to set the price of a product or service at a certain level, often illegally, to avoid competition.

CEOs Collude

This term refers to illegal or unethical agreements between CEOs of different firms to make decisions that restrict competition, manipulate prices, or control market entry.

Oligopolists

Firms operating in a market where a small number of entities control a large portion of the market share, influencing prices and competition.

Cooperative Agreement

A collaborative arrangement between two or more parties to jointly achieve specific goals, often in business or research.