Which of the following is a reason for the tremendous increase in the flow of foreign direct investment from 1990 to 2011?
A) The relaxation of transfer pricing regulations
B) The liberalization of investment laws in many countries
C) The similarities in tax rates and tax laws across the globe
D) The universal application of U.S. GAAP accounting standards

Question

Quizplus · Accepted Answer

The liberalization of investment laws in many countries allowed for easier access and entry by foreign investors, leading to an increase in foreign direct investment. The relaxation of transfer pricing regulations or the similarities in tax rates and laws across the globe did not necessarily contribute to the increase. The universal application of U.S. GAAP accounting standards may have improved transparency and reporting, but it was not a significant factor in the increase of foreign direct investment.

Which of the Following Is a Reason for the Tremendous