Johnston Forest in Rhode Island has a cave that houses thousands of fruit bats. Bat droppings are highly acidic and have ruined
the paint on many Rhode Island cars. The flying radius of the Johnston Forest bats encompasses two towns, Johnston and Foster. The residents of Johnston collectively value bat removal at $400,000. Foster residents collectively value bat removal at $500,000. Pest control experts estimate that the cost of bat removal would be $450,000. Which of the following scenarios would lead to removal of the bats? Instructions: You may select more than one answer.
a. Foster pays Johnston $50,000 to contribute to bat removal.
b. Foster and Johnston evenly split the cost of bat removal
c. Johnston contributes nothing toward bat removal.
Foster and Johnston evenly split the cost of bat removal
Answer: Option (B) is correct
<u>Explanation:</u>
Even splitting of bat removal cost will divide the burden equally between Foster and Johnston. Since the cost of bat removal is very high. If The burden falls on a single town then it will take it as a burden and will not contribute.
But equal participation from both the towns will ease the task and matter will be solved quickly. This will help in the removal of bats otherwise this matter will not be resolved.
"Guanxi" means "connection" or "networking" and is a long business tradition in the Chinese culture. It involves trust. Because personal and mutual trust is built in time, this demonstrates that China has a long-term orientation.
