Question

domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because question 3select one: a. the least-cost strategy usually involves the adoption of one set of environment-friendly technology rather than multiple standards. b. they may be forced to replace the old technology whenever the foreign country experiences positive economic development. c. their environment-unfriendly technology may be replaced by foreign-based technology. d. foreign nations may be upset if firms do not use the environment-friendly technology.

Answer 1

Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards due to potential penalties and risks associated with non-compliance and environmental disasters. By complying with environmental laws, foreign-owned plants in low-income countries can have a better track record in environmental compliance compared to locally-owned plants.

Step-by-step explanation:

Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because foreign nations may be upset if firms do not use the environment-friendly technology. When international companies build plants in low-income countries with lax environmental laws, they often choose to use the same design and technology as their high-income country plants to minimize the risk of environmental disasters and potential financial losses. By complying with environmental laws, foreign-owned plants in low-income countries can have a better record of environmental compliance compared to locally-owned plants.