Offering subsidies to foreign MNEs in the form of tax breaks or grants is one way of:
A) adopting a retaliatory stance in bilateral trade.
B) courting FDI believed to be in national interest.
C) adopting a radical stance to FDI.
D) blocking FDI inflows into the country.
E) curbing a trade war.

Question

Quizplus · Accepted Answer

Offering subsidies to foreign MNEs, such as tax breaks or grants, is a way of attracting and encouraging foreign direct investment (FDI) that is believed to be in the national interest. This can include promoting job creation, infrastructure development, or encouraging the transfer of advanced technologies. It is a common practice among many countries to offer these types of incentives to attract foreign investment to their economies.

Offering Subsidies to Foreign MNEs in the Form of Tax