IBM was unhappy with Romania's recent decision to revoke their five-year tax holiday for export-oriented investors. IBM decided they would try to bargain with the Romanian government to try and get them to change this regulation. This is an example of the ____ strategy for managing regulatory change.

Question

BlackTom AI · Accepted Answer

The scenario describes IBM attempting to influence and modify a government regulation through negotiation rather than simply complying or avoiding the issue. This is about changing the regulation itself, not about merely applying it or avoiding it.
Option 1: 'apply' would mean IBM simply implements or enforces the regulation as it stands, which is the opposite of bargaining to change it.
Option 2: 'avoid' implies disengaging from the issue or steering clear of regulatory interaction, which does not match IBM’s active bargaining to seek a regulatory change.
Option 3: 'accede' means to yield or conform to the regulation as it stands or to concede to the regulation without attempting to modify it, which is inconsistent with trying to change the regulation.
Option 4: 'alter' fits best because the core action is to modify or change the regulatory framework through negotiation with the government, aligning with the idea of managing regulatory change by seeking a different outcome.
Option 5: 'ally' would suggest forming an alliance or partnership, which could play a role in regulatory efforts but does not directly describe the strategy of changing the regulation itself through bargaining.

MKTG 445 (003 - 12:20pm) EXAM # 1

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