What is one reason for the tremendous increase in the flow of foreign direct investment from 1982 to 2007?
A)Transfer pricing
B)The liberalization of investment laws in many countries
C)The similarities in tax rates and tax laws across the globe
D)The availability of hedging instruments

Question

Quizplus · Accepted Answer

The liberalization of investment laws in many countries allowed for easier foreign direct investment, which led to a tremendous increase in the flow of foreign direct investment from 1982 to 2007. This included reduced restrictions on ownership and control of companies by foreign entities, as well as fewer barriers to repatriation of profits. Transfer pricing, similarities in tax rates and tax laws, and availability of hedging instruments may have played some role, but the liberalization of investment laws was the primary driver.

What Is One Reason for the Tremendous Increase in the Flow