Why Should Business Managers Be Familiar with Laws That Regulate

question 82

Multiple Choice

Why should business managers be familiar with laws that regulate business practices between nations?

• A) Advances in trade and technology have made trade with other countries easy, but companies must comply with local laws.
• B) NAFTA requires registered businesses to understand and comply with international law.
• C) GATT mandates that U.S. organizations know the laws in the United States and in 150 other member countries in order to incorporate.
• D) Businesses are required to know the laws and to become WTO members to have Internet websites.
• E) Businesses may meet foreigners and should be familiar with their customs to foster positive business relationships.

---

Definitions:

Activity-based Management

A method of management that focuses on business activities for improving the value received by the consumer and the profit gained by providing this value.

ABC

Activity-Based Costing (ABC) is a method of assigning indirect costs to products and services based on the activities they require.

Batch Size

The quantity of units produced in a single production run or batch, affecting efficiency and cost.

Complexity

The state or quality of being intricate or complicated, often referring to processes, systems, or issues with many interrelated parts or aspects.