US-Based Bluegray Designs Is Undertaking a Project for a Client

question 33

Multiple Choice

U.S.-based Bluegray Designs is undertaking a project for a client based in Sweden.As a result,most negotiation interactions will take place through telephone conferences or e-mail.Which of the following demonstrates that this system will be an advantage for Bluegray?

• A) Conflicts are expressed more quickly if negotiators work in close proximity.
• B) Greater distance tends to block the feedback loops provided in face-to-face negotiations.
• C) The formality of a scheduled phone meeting allows parties to better prepare for the negotiation.
• D) Distance eliminates the tendency of negotiators to chat informally.

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Definitions:

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period.

Loanable Funds

Refers to the money available for borrowing. The market for loanable funds is where borrowers demand and lenders supply funds, determining the interest rate.

Interest Rate

The charge for borrowing money or the return for investing money, often expressed as a percentage of the amount lent, borrowed, or invested.

Time-value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.