Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations?
A)the firm searches for less restrictive operating environments overseas
B)the firm responds to customers' demands more promptly
C)the firm becomes entangled in lengthy litigation
D)the firm expands its domestic operations

Question

Quizplus · Accepted Answer

If regulations and restrictions enforced by a firm's home government prove to be expensive for the firm's operations, the most likely result is that the firm will search for less restrictive operating environments overseas. This is because the firm may find it difficult to operate profitably in its home country due to the high costs of compliance with regulations and restrictions. Thus, the firm may choose to invest in countries with more favorable regulatory environments where it can operate more efficiently and cost-effectively.

Which of the Following Is the Most Likely Result of Regulations