Examine the overall manner in which formal and informal institutions combine to influence firm behavior.

  • From the case study, imagine that you are the CEO of Yamakawa Corporation’s U.S. subsidiary. You are faced with the dilemma of either cutting salaries or cutting jobs. Analyze the role that institutions, cultures, and ethics played in this case and determine whether you will cut salaries or jobs. Provide a rationale for your decision.
  • Examine the overall manner in which formal and informal institutions combine to influence firm behavior. Provide two (2) examples that depict the effects that formal and informal institutions can have on a firm’s strategy.

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