Which of the following situations will discourage business activities of foreign firms in an emerging market?
A) allowing foreign firms to access the country's energy resources
B) increasing the requirements for licenses, approvals, and paperwork
C) using a strong legal framework and patent laws
D) investing in a strong Internet infrastructure

Question

Quizplus · Accepted Answer

Increasing requirements for licenses, approvals, and paperwork can create bureaucratic hurdles and additional costs for foreign firms, making it more difficult for them to operate in an emerging market. This can discourage their business activities by increasing the complexity and expense of entering or expanding within the market.

Which of the Following Situations Will Discourage Business Activities of Foreign