Describe the Reinforcement Theory

question 35

Essay

Describe the reinforcement theory.
E. L. Thorndike's Law of Effect states that a response followed by a reward is more likely to recur in the future. The implication for compensation management is that high employee performance followed by a monetary reward will make future high performance more likely. By the same token, high performance not followed by a reward will make it less likely in the future. The theory emphasizes the importance of a person's actual experience of a reward.

Identify the effects of tariffs and quotas on domestic economies and global trade.

Recognize the benefits of comparative advantage and the role it plays in international trade.

Describe the consequences of trade restrictions on consumer choice and market variety.

Understand the relationship between trade policies and consumer prices.