_____ Arise When the Business System in a Foreign Country

question 40

Multiple Choice

_____ arise when the business system in a foreign country is so different from that in a firm's home market that the enterprise has to devote considerable effort,time,and expense to learning the rules of the game.

• A) Sunk costs
• B) Variable costs
• C) Pioneering costs
• D) Opportunity costs
• E) Standard costs

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Definitions:

Compensatory

Related to making up for a deficiency or lack in one area by excelling or overperforming in another area.

Köhler Effect

A phenomenon in group dynamics where less capable members increase their effort when working collectively, motivated by the desire to contribute to the group's success.

Conjunctive Task

A task in which the performance of the group depends on the least capable member, requiring all members to contribute for success.

Social Compensation

The tendency of individuals in a group to work harder to compensate for the perceived lower performance levels of their peers.