Lucy Is Being Sent on a Foreign Assignment to Japan

question 10

Multiple Choice

Lucy is being sent on a foreign assignment to Japan. She assumes that she can reach agreements in Japan on the basis of general trust, without the need for specific and legalistic contracts. She makes this assumption because she knows that Japan is _____.

• A)ethnocentric
• B)a low-context culture
• C)a collectivistic culture
• D)an individualistic culture
• E)a high-context culture

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Definitions:

Excess Capacity

A situation where a firm is operating below its maximum production capability and can produce more with the existing resources.

Physical And Human Capital

Assets including machinery, buildings (physical capital) and the skills, knowledge, and experience possessed by an individual or population (human capital).

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been built to handle, due to insufficient demand.

Product Diversity

The variety of different items within a particular category available to consumers in the market.