In terms of intraorganizational behavior, all things being equal, why is integrative bargaining preferable to distributive bargaining?
What will be an ideal response?
In terms of intraorganizational behavior, all things being equal, integrative bargaining is preferable to distributive bargaining because the former builds long-term relationships. Integrative bargaining bonds negotiators and allows them to leave the bargaining table feeling they have achieved a victory. Distributive bargaining, however, leaves one party a loser. It tends to build animosities and deepen divisions when people have to work together on an ongoing basis. Research shows that over repeated bargaining episodes, when the "losing" party feels positive about the negotiation outcome, he is much more likely to bargain cooperatively in subsequent negotiations. This points to an important advantage of integrative negotiations, even when you "win," you want your opponent to feel good about the negotiation.
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What is a comparative advantage in borrowing, and how could it arise?
What will be an ideal response?
Hedge funds are
A) low risk because they are market-neutral. B) low risk if they buy Treasury bonds. C) low risk because they hedge their investments. D) high risk because they are market-neutral. E) high risk, even though they may be market-neutral.