Foreign Subsidiaries Must Obey the Local Laws

question 32

Multiple Choice

Foreign subsidiaries must obey the local laws. If they don't, according to the text they are subject to:

• A) legal action by the host country.
• B) two of A, C, andD
• C) seizure by the host government.
• D) Both A and C are correct, so B is the proper response to this question.
• E) all of A, C and D.

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Definitions:

Social Institutions

Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

Ethical Culture

A corporate or organizational environment that promotes ethical behavior among its members through shared values, practices, and leadership.

Organizational Environment

External and internal factors that affect an organization's functioning, including social, economic, and technological influences.

Integrity Of Decisions

The quality of making choices that are upright, honest, and adhere to moral and ethical principles.