Nicole and other managers in her firm have some ties to Europe and are investigating opportunities for global expansion. They are struggling to understand the risks, given the complexity of world markets today and recent global instabilities. The difficulty Nicole's team is facing prevents perfectly rational decision making, and is an example of
A. risk aversion.
B. bounded rationality.
C. groupthink.
D. defensive avoidance.
E. anchoring and adjustment.
B. bounded rationality.
The bounded rationality concept suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity. The problems that need solving are often exceedingly complex, beyond understanding.
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The knowledge of tax laws can help you
A) conserve your income. B) enhance your investments. C) protect the transfer of your wealth at your death. D) All of the above.
There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customer tastes. This is called
A. hypercompetition. B. ultracompetition. C. hypocompetition. D. extracompetition. E. supercompetition.
What category of outsourcing countries includes Canada, India, Ireland, Israel and the Philippines?
A. The leaders. B. The up-and-comers. C. The rookies. D. None of the above.
What is heuristics? List one business or military example of a heuristic. List one personal example (something you use in your own life) of a heuristic.
What will be an ideal response?