What's the Opportunity Cost of Taking an Unfair Advantage in a Deal

question 8

Multiple Choice

What's the opportunity cost of taking an unfair advantage in a deal?

• A) Probably nothing, if the transaction is only taking place once.
• B) Building a reputation for being untrustworthy if the deal is likely to be repeated.
• C) Future deals may not occur or may come at a much higher cost.
• D) All of these statements are true.

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Definitions:

Forward Contracts

Non-standardized contracts between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Trade Surplus

Occurs when a country's exports exceed its imports during a specific time period, indicating a positive balance of trade.

Exports

Goods or services sent from one country to another for sale or trade.

Imports

Goods or services brought into one country from another for the purpose of sale or trade.