The requirement by the U.S.government that its subsidiaries abroad comply with trade restrictions with Cuba is an example of ________.
A) utilitarianism
B) extraterritoriality
C) absolute advantage
D) relative advantage

Question

Quizplus · Accepted Answer

The requirement by the U.S. government that its subsidiaries abroad comply with trade restrictions with Cuba is an example of extraterritoriality, which refers to a country's jurisdiction beyond its own borders. In this case, the U.S. government is extending its trade restrictions with Cuba to its subsidiaries abroad, even if they are located in countries that do not have such trade restrictions. This can present a challenge for multinational corporations who may face conflicting laws and regulations in different countries.

The Requirement by the U