One notable legal consequence will be that SuperLoud will be required to pay taxes to both China and the USA, in addition to complying with international laws. It is within the jurisdiction of governments to levy taxes, and SuperLoud will be obligated to fulfill its tax obligations by paying the taxes and submitting tax returns. Engaging in tax evasion can result in legal complications that may impede their production activities. An important business implication is that SuperLoud stands to generate substantial profits due to the lower labor costs in China. The utilization of inexpensive workforce will reduce the operational expenses. The Chinese will also benefit from increased employment opportunities, thereby mitigating the issue of overpopulation and unemployment. This will also lead to the establishment of strong business ties between the United States and China. The customer base for SuperLoud will also be enlarged.
a) true
b) false