Answer Happy

The new coronavirus (Covid-19) outbreak has led to a deep recession in most countries in the world. Many companies have been in trouble and some crucial sectors, such as aviation and tourism, have lost the majority of their business. Assume there are two managers in the UAE that have very different ideas about how to deal with recessions. Mr. Nice Guy, who is the executive manager of Emirates Airline, believes in keeping workers during an economic downturn and does so by getting all of his workers to agree to a wage cut. Mr. Tough Guy, who is the executive manager of Etihad Airways, believes that the best policy is to lay off workers and keep the wages of the remaining workers unchanged. Answer the following questions: A. Compare and contrast these two methods of dealing with an economic downturn. (3 marks) B. Which is likely to be more profitable for the firm and why? (1 mark) C. Demonstrate whether there is any negative effect of the profitable option. (1 mark) mark)