What Are the Implications of Cultural Differences for International Businesses

question 33

Essay

What are the implications of cultural differences for international businesses?

Evaluate the impact of technological advancements on monitoring workers and its effect on efficiency wages.

Distinguish between market-clearing wages and efficiency wages.

Identify the reasons why companies might prefer to pay efficiency wages.

Understand the "no shirking constraint" (NSC) in the context of efficiency wages and its effects on employment levels.

---

Definitions:

Discounted

A reduced price or value, often as an incentive for purchase, representing a deduction from the usual cost of goods or services.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Round

To adjust a number to a desired degree of precision, usually to a nearby value that is easier to work with or understand.

Markup

The sum included in the purchase price of products to account for overhead expenses and gain profit.