Why Are German and Japanese Firms Generally Better at Managing

question 79

Multiple Choice

Why are German and Japanese firms generally better at managing market volatility than American firms?

• A) Their emphasis is on beating competitors.
• B) They value employees highly and eschew layoffs.
• C) They maintain limited product lines.
• D) They reduce prices faster and raise advertising expenditures during booms.
• E) They consider market share to be a strategic goal.

---

Definitions:

Price

The quantity of currency projected, called for, or dispensed as remuneration for something.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Maximum Wage Law

Legislation that sets an upper limit on the amount of money that can be earned by employees in a specific period.

Price Ceiling

A legally established maximum price that can be charged for a good or service.