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What type of decision-making includes managers from many countries and is based on ideas contributed by people representing a variety of cultures?

a) Global consensus decision-making
b) Cross-border executive decision-making
c) Multinational collaboration decision-making
d) Cultural diversity decision-making

1 Answer

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Final answer:

The decision-making approach that involves managers from multiple countries and values diverse cultural contributions is known as global consensus decision-making. It is part of the collective decision-making process and aims to balance varied viewpoints and interests to reach a shared decision.

Step-by-step explanation:

The type of decision-making that includes managers from many countries and is based on ideas contributed by people representing a variety of cultures is called global consensus decision-making. This approach acknowledges the value of diverse cultural perspectives in shaping business strategies and operations on a global scale. It involves collaborative efforts where decisions are made collectively, often after thorough discussions and negotiations amongst international team members to reach a common agreement. This approach can be seen as part of the collective decision-making process where there is an emphasis on building consensus rather than relying on majority or supermajority rules.

In collective decision-making, transaction costs associated with coordination may rise, but it allows for a wider array of viewpoints to be considered, reducing the conformity costs. Moreover, issues of collective dilemmas often arise, as group members have different goals or may act in self-interest. Nonetheless, global consensus decision-making attempts to mitigate such dilemmas through inclusive discussions and by attempting to balance various interests and cultural insights for the sake of shared goals.

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