Which of the Following Is NOT an Example of Normativism

question 12

Multiple Choice

Which of the following is NOT an example of normativism?

• 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:

Price

The amount of money required to purchase a good or service, determined by various market and economic factors.

Scarce Resources

Essential inputs that are available in limited quantities for the production of goods and services, leading to the problem of allocation.

Law of Demand

Economic principle stating that, ceteris paribus, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Unlimited Wants

The economic concept that human desires and needs are endless and vary in nature, leading to constant demand for goods and services.