Question

The government of Katia has made it mandatory for international banks and insurance firms to obtain the consent of individuals before exchanging their personal data with other branches of the firm in foreign countries. These firms cannot share the personal details of an individual such as income, employment details, and debt repayment histories, even with their branches in other countries, without the approval of the individual. Which of the following barriers to the functioning of service firms is in effect in the above scenario?

A) Protectionism
B) Controls on transborder data flows
C) Protection of intellectual property
D) Cultural requirements for adaptation
E) Language translation barriers

Answer 1

Controls on transborder data flows

Step-by-step explanation:

The barrier to the functioning of service firms in the above scenario is Controls on transborder data flows. This refers to the government requirements that international banks and insurance firms must obtain the consent of individuals before exchanging their personal data with other branches of the firm in foreign countries.