Answer:
B) evasion of host country governmental regulations
Step-by-step explanation:
The Foreign Corrupt Practices Act forbids American business people from bribing foreign officials. Believe it or not, until recent years only American companies were subject to this ethical/legal consideration. Corruption was flagrant in most European multinationals and the only time they were prosecuted was when they competed against American companies and were prosecuted for it. But the answer was simple, European upper managers were not extradited to the US, e.g. Siemens corruption scandals in South America, Mercedes Benz, etc. A few years ago corruption was finally addressed in the EU, but it is still flagrant and widespread in Asian countries.
Many companies engage in foreign direct investments in order to benefit from lower production costs, access to raw materials and may times lower taxes.