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Question 58/136

Jurisdictions are most likely to impose extraterritorial laws in relation to:

A. bribery and corruption

B. paying suppliers appropriately and promptly.

C. upholding high standards in health and safety

Correct Answer: A

Jurisdictions are most likely to impose extraterritorial laws in relation to bribery and corruption.
Extraterritorial laws are those that have legal force beyond the borders of the issuing country, and they are often applied to combat global issues such as corruption.
* Global Standards: Countries impose extraterritorial laws to ensure that their nationals and corporations comply with anti-bribery and anti-corruption standards, regardless of where they operate. This helps maintain ethical business practices internationally.
* Regulatory Frameworks: Prominent examples of extraterritorial laws include the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, which apply to activities conducted abroad by U.S. and UK entities, respectively. These laws aim to prevent and penalize bribery and corruption on a global scale.
* Enforcement and Compliance: By implementing extraterritorial anti-corruption laws, jurisdictions can enforce compliance and hold companies accountable for corrupt practices in foreign countries, promoting transparency and integrity in international business.
References:
* MSCI ESG Ratings Methodology (2022) - Discusses the role of extraterritorial laws in combating bribery and corruption and their impact on global business practices.
* ESG-Ratings-Methodology-Exec-Summary (2022) - Highlights the significance of extraterritorial regulations in maintaining ethical standards and preventing corruption in international operations.

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