Which of the following is an example of extraterritoriality?
A) a U.S. subsidiary operating in China that is forced to follow some U.S. laws, even though China has no comparable laws
B) a U.S. sweatshop operating in Thailand that does not follow U.S. labor laws but allows children to work 60 hours a week
C) an MNE manager who, after working in the host country, tries to implement foreign practices in the home-country office
D) a British subsidiary operating in Indonesia that maintains the same health and safety standards for its foreign factories that are required in Great Britain, even though the British government does not require it to use those standards

Question

Quizplus · Accepted Answer

Extraterritoriality refers to a situation where a country's laws are applied beyond its borders. In option A, the U.S. subsidiary in China is required to follow U.S. laws, which is an example of extraterritorial application of U.S. law.

Which of the Following Is an Example of Extraterritoriality