Firms are affected only by the governmental regulations of the country in which they are headquartered.

Question

Quizplus · Accepted Answer

Firms can be affected by governmental regulations in the countries where they operate, not just their headquarters. Laws and regulations can vary greatly between countries, impacting areas such as taxation, labor laws, environmental regulations, and more. Failure to comply with the regulations of the countries where the firm operates can lead to legal and financial consequences.

Firms Are Affected Only by the Governmental Regulations of the Country