Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone comment on this please Every firm and worker wants to be ensured with a form of security, when tackling something new, such as

can someone comment on this please

image text in transcribed
Every firm and worker wants to be ensured with a form of security, when tackling something new, such as making a brand new product or company from scratch. It takes a lot of patience and guts to be able to run a successful business and one major way to get there is for people to embark on these types of contracts. They help provide companies and workers with a long term goal for how they want to run or be a part of a business by eliminating the number of risks associated with the labor market. The contracts are also not permanent, so after is expires, one can chose to renew the contract or to chose a different contract that is better suited for them. It is also extremely costly for someone to negotiate a contract in the amount of risks they must take to try and negotiate what they want and the amount of funds it takes to make it happen. These types of contracts also help provide companies and workers with a form of protection from inflation, so that they will not be detrimentally affected by a huge rise in inflation or CPI from one year to another. The fixed prices or wages is typically what makes people at first be hesitant about embarking on signing one of these contracts. People can try to trick companies or workers into thinking that the inflation or CPI will skyrocket in the next year based on some data they had found. This can end up making people feel like they scored a great deal, when in reality they got scammed. If negotiated properly, if a sudden huge increase in inflation occurred, these people would be protected and would not have to pay any more money for certain goods and services due to them signing the contract

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Administration And Law

Authors: David H Rosenbloom, Rosemary O'Leary, Joshua M Chanin

3rd Edition

1439803986, 9781439803981

More Books

Students also viewed these Economics questions