Question

Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because:___.

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 often adopt environment-friendly standards internationally because it is cost-effective to use one technology globally, it avoids the risk of environmental disasters and related costs, and helps comply with global trends for stronger environmental standards.

Step-by-step explanation:

Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards for several reasons. A major factor is that the least-cost strategy usually involves the adoption of one set of environment-friendly technology rather than multiple standards. This is due to the complex and costly nature of designing industrial plants, where companies benefit from using a design that works well universally, minimizing the risk of environmental disasters that could lead to substantial financial losses in paying for damages, lost trust, and reduced sales. Moreover, there's a global trend towards pressuring countries to adopt stronger environmental standards, often influenced by international trade considerations, and complying with such standards can help companies avoid trade barriers.