Larry Is a Top-Level Manager at Smart-Tech, an American Semiconductor

Larry is a top-level manager at Smart-Tech, an American semiconductor firm. Larry is heavily involved in the negotiation procedures between Smart-Tech and a Saudi Arabian financial group. The Arabs want to invest in the semiconductor industry by entering into a joint-venture with Smart-Tech. Smart-Tech and the Saudi Arabian financial group plan to build two semiconductor manufacturing facilities--one in the U.S. and one in Saudi Arabia. Smart-Tech executives are considering the idea of negotiating the final terms of the contract via videoconferences rather than sending Larry and his team to Saudi Arabia. Which of the following undermines the argument that Larry should negotiate via videoconference?

A) Middle Easterners are skeptical of using technology.
B) The Middle Eastern culture is low-contact and low-context.
C) Business transactions in the Middle East tend to be lengthy and primarily nonverbal.
D) Relationships and hospitality are prerequisites for business transactions in the Middle East.

Correct Answer:

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