Which of the following is a home-country policy for limiting outward FDI?
A)eliminating double taxation of foreign income
B)manipulating tax rules to encourage the firms to invest at home
C)withdrawing government-backed insurance programs provided to local investors
D)reducing interest rates earned on domestic investments
E)prohibiting organizations from entering into a cartel

Question

Quizplus · Accepted Answer

Manipulating tax rules to encourage firms to invest at home is a home-country policy for limiting outward FDI. This is because if tax rules are structured in a way that makes investing abroad less profitable than investing at home, it can discourage firms from seeking opportunities outside their home country.

Which of the Following Is a Home-Country Policy for Limiting