Which of the Following Is a Disadvantage of Local Requirement

question 12

Multiple Choice

Which of the following is a disadvantage of local requirement laws to foreign companies?

• A) They do not foster local business activity and increase regional and national unemployment.
• B) They make it necessary for the government to resort to expropriation and confiscation.
• C) The companies are forced to bring in raw material and workers from their own countries.
• D) Companies required to hire local personnel might be forced to take on inadequately trained workers.

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Definitions:

Base Salary

The initial rate of compensation given to an employee, excluding any bonuses or benefits.

Weighted-Average Inventory

A method of calculating the cost of inventory that takes into account the cost of goods sold and the remaining inventory.

Generally Accepted Accounting Principles

A set of rules and standards designed to improve the clarity, consistency, and comparability of financial reporting across different entities.

Fiscal Year

An accounting period of twelve months used for government or corporate financial reporting and budgeting, not necessarily aligning with the calendar year.