A government that enforces its own laws on foreign subsidiaries of its domestic companies practices ________.
A) civil law
B) relativism
C) externality
D) extraterritoriality

Question

Quizplus · Accepted Answer

The scenario described in the question is an example of extraterritoriality, which refers to the application of a country's laws outside of its own borders. In this case, the government is enforcing its laws on the foreign subsidiaries of its domestic companies, even though those subsidiaries are located outside of the country's jurisdiction.

A Government That Enforces Its Own Laws on Foreign Subsidiaries