If the Fed increases the discount rate, it is pursuing A. a contractionary policy because it will be more costly for banks to borrow funds and this puts upward pressure on interest rates in the economy. B. a contractionary policy because it reduces banks' profit margins by raising the cost of borrowing and lowering the return on lending. C. an expansionary policy because it raises the cost of holding excess reserves in the banking system. D. an expansionary policy because it increases bank profits by putting upward pressure on the interest rates that banks can charge on its loans.

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

Decision alternatives should be identified before decision criteria are established. are limited to quantitative solutions are evaluated as a part of the problem definition stage. are best generated by brain-storming.

James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. the negotiator has neglected to consider the course of action he will take if the proposed deal is not possible.