A Builder in Miami Started Constructing Homes During the "Hot

question 83

Multiple Choice

A builder in Miami started constructing homes during the "hot" real estate market,even though he knew there were a lot of speculators in the market.The market went cold,and the builder was stuck selling for very low prices.The builder demonstrated

• A)bounded optimization.
• B)escalation of commitment.
• C)risk propensity.
• D)strategic maximization.
• E)intuitive rationality.

---

Definitions:

Human Resources

A business function focused on the management of employee-related processes such as hiring, training, policy implementation, and benefits administration.

Geographic Proximate

The physical closeness or distance of places or entities, influencing interactions and relationships due to location.

Administrative Differences

Variations in the organization, procedures, or policies between different businesses, governments, or institutions.

Liability of Foreignness

The disadvantages or additional costs that firms operating outside their home countries incur, compared to local firms.