Which of the following methods is being used when a host country provides lower tax rates and low-interest loans to firms from abroad for encouraging inflows of foreign direct investment?
A) financial incentives
B) sanctions
C) local content requirements
D) embargoes

Question

Quizplus · Accepted Answer

This is an example of financial incentives, specifically through the use of lower tax rates and low-interest loans. Sanctions, local content requirements, and embargoes would involve penalties or restrictions on foreign firms, rather than incentives.

Which of the Following Methods Is Being Used When a Host