Which of the Following Is an Example of Extraterritoriality

question 10

Multiple Choice

Which of the following is an example of extraterritoriality?

• A) a U.S. subsidiary operating in China that is forced to follow some U.S. laws, even though China has no comparable laws
• B) a U.S. sweatshop operating in Thailand that does not follow U.S. labor laws but allows children to work 60 hours a week
• C) an MNE manager who, after working in the host country, tries to implement foreign practices in the home-country office
• D) a British subsidiary operating in Indonesia that maintains the same health and safety standards for its foreign factories that are required in Great Britain, even though the British government does not require it to use those standards

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Definitions:

Chauffeur

A person employed to drive a passenger motor vehicle, especially a luxury vehicle such as a large sedan or limousine.

Employer

An individual or organization that hires and remunerates individuals to undertake specific roles or jobs, often providing direction and control over the work performed.

Sole Proprietorship

A business owned and operated by one individual, where there is no legal distinction between the owner and the business entity.

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability and allowing it to own property, enter contracts, and sue or be sued.