Which of the following is an unlikely objective of U.S. government policy for the taxation of foreign MNEs?
A) to raise revenues
B) to provide an incentive for U.S. private investment in developing countries
C) to improve the U.S. balance of payments
D) All of the above are objectives.

Question

Quizplus · Accepted Answer

All of the listed options are indeed objectives of U.S. government policy for the taxation of foreign Multinational Enterprises (MNEs). Raising revenues is a direct objective of any taxation policy. Providing incentives for U.S. private investment in developing countries can help stimulate economic growth abroad and potentially reduce foreign aid requirements. Improving the U.S. balance of payments is also a goal, as investments and earnings abroad can affect imports, exports, and the flow of capital.

Which of the Following Is an Unlikely Objective of U