What is the most likely effect of costly regulations and restrictions enforced by a firm's home government?
A) Firms search for less restrictive operating environments overseas.
B) Firms respond to customer demands more promptly.
C) Firms become entangled in lengthy litigation.
D) Firms expand their domestic operations.

Question

Quizplus · Accepted Answer

Costly regulations and restrictions enforced by a firm's home government can make it difficult and expensive for firms to operate domestically. As a result, firms may search for less restrictive operating environments overseas where they can operate more efficiently and cost-effectively.

What Is the Most Likely Effect of Costly Regulations and Restrictions