To limit the effects of outbound foreign direct investment on the national economy, home governments may impose differential tax rates that charge earnings from abroad at a higher rate than domestic earnings.

Question

Quizplus · Accepted Answer

This statement is true. By imposing higher tax rates on earnings from outbound foreign direct investment, home governments can discourage companies from investing abroad and encourage them to invest domestically, thus limiting the potential negative effects on the national economy.

To Limit the Effects of Outbound Foreign Direct Investment on the National