Why Do Foreign Companies Sometimes Have Problems Complying with Stringent

question 184

Multiple Choice

Why do foreign companies sometimes have problems complying with stringent and often changing regulations and bureaucratic obstacles?

• A) Because local government is out of control and trying to make a money grab
• B) Because the laws are stupid
• C) Because the government is trying to achieve cartel status for its domestic products
• D) Because of business practice laws
• E) Because the managers in the foreign firm are ill-informed

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Definitions:

Absolute Advantage

The capability of a country, individual, company, or region to produce a good or provide a service more efficiently than its competitors when using the same amount of resources.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Alfalfa

A leguminous plant used primarily for feeding livestock, rich in nutrients and often grown as fodder.

Opportunity Cost

The expense incurred by not choosing the second-best option during decision-making, which embodies the advantages lost by selecting one choice over the others.