Host government demands generally
A) discourage foreign companies from operating in the home country.
B) increase pressures for cost reductions.
C) increase pressures for local responsiveness.
D) impede a company's ability to minimize its transaction costs.
E) impede a company's ability to differentiate its product offering across national borders.\

Question

Quizplus · Accepted Answer

Host government demands generally increase pressures for local responsiveness, as governments may require companies to adapt their products or policies to meet local culture, laws, or preferences. This can include demands for local sourcing, hiring, or marketing strategies, which can increase costs and complexity for foreign companies operating in a host country. However, these demands do not necessarily discourage foreign companies from operating in the home country, increase pressures for cost reductions, impede a company's ability to minimize its transaction costs, or impede a company's ability to differentiate its product offering across national borders.

Host Government Demands Generally