Phil, a Buyer for a Chain of Departmental Stores in the U.S

question 44

Multiple Choice

Phil, a buyer for a chain of departmental stores in the U.S., and his team are engaged in negotiations with a Brazilian supplier. Which of the following signals would indicate that Phil's team has been making progress in the negotiations with the Brazilians?

• A) Lowered bargaining by the Brazilians.
• B) Sending executives of lower rank to continue the discussions.
• C) A noticeable decrease in instances of private conversations among the Brazilians.
• D) Questions that focus on the more general areas of the deal.
• E) A softening of attitudes and positions on some of the issues.

---

Definitions:

Utility Function

An economic concept representing a user's satisfaction levels with varying consumption of goods or services, ranked from less to more preferred.

Interest Rate

The slice of a loan that generates interest charges for the borrower, often cited as an annual percentage of the yet-to-be-paid loan amount.

Inflation

An economic condition characterized by a general increase in prices and fall in the purchasing value of money.

Utility Function

A mathematical representation of how different bundles of goods or services rank according to their utility (satisfaction) for an individual or entity.