Question

if the company were to threaten to leave madagascar after 5 years, which of the following options could the madagascan government utilize to maintain the companys investment? (select all that apply)
the government could allow the company to sell its products to madagascan consumers duty free
the government could reduce regulations in the production process to make it cheaper for the company to produce its goods
the government could have the u.s. government jail the corporate executives and stop the company from moving
the government could offer to further reduce the tax rate for the company
question 24 (1 point)
listen
based on the information provided in the scenario, which of the statements are correct? (select all that apply)
the corporation moved to madagascar to please u.s. workers
the corporation moved to madagascar due to the availability of cheap labor and other advantages
the corporation moved to madagascar to build food - processing facilities
the corporation moved to madagascar based on a strong sense of corporate social responsibility

Explanation:

First Question (Company Investment Maintenance)

To determine valid options, we analyze each:

• Duty - free sales (first option) reduces costs for the company, making investment more attractive.
• Reducing production regulations (second option) lowers production costs, encouraging the company to stay.
• The U.S. government jailing executives (third option) is not a valid action for the Madagascan government, so this is incorrect.
• Further tax reduction (fourth option) increases the company's profits, incentivizing continued investment.

• Pleasing U.S. workers (first option) is not a typical reason for a corporation to move to another country.
• Availability of cheap labor and other advantages (second option) is a common reason for companies to relocate for cost - saving and competitive advantages.
• Building food - processing facilities (third option) is a possible action after moving, not the main reason for moving.
• A strong sense of corporate social responsibility (fourth option) is not a primary reason for relocating to a country for business operations.

Answer:

• The government could allow the company to sell its products to Madagascan consumers duty free
• The government could reduce regulations in the production process to make it cheaper for the company to produce its goods
• The government could offer to further reduce the tax rate for the company

Question 24 (Corporation's Move to Madagascar)