Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway.

Which of the following supports a decision in favor of Super Sports opening a store in Norway?

a. Product injury cases generally rule in favor of plaintiffs regardless of evidence.

b. The opening of warehouse-style stores requires the approval of local retailers.

c. Advertising and marketing of particular products are banned under local distribution laws.

d. MNEs may transfer profits back to the home country without restriction.

Question

Business

Perkins

28 July, 13:42

Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway.

Which of the following supports a decision in favor of Super Sports opening a store in Norway?

a. Product injury cases generally rule in favor of plaintiffs regardless of evidence.

b. The opening of warehouse-style stores requires the approval of local retailers.

c. Advertising and marketing of particular products are banned under local distribution laws.

d. MNEs may transfer profits back to the home country without restriction.

+5

Answers (1)

Know the Answer?

Victor Franklin · Answer 1

D) MNEs may transfer profits back to the home country without restriction.

Explanation:

One of the largest obstacles that multinational enterprises (MNE) face when carrying out foreign direct investments is that they must be sure that they will be able to recover their investment and have access to the profits generated by the foreign subsidiaries. It makes no sense to open a subsidiary in a country that will not let money be sent to the corporation's headquarters. E. g. Iran faces severe economic sanctions that basically isolate it from the rest of the word, so investing in Iran is a really bad idea because no matter how profitable a company might be, the profits will remain there.