Which of the Following Is an Advantage of Conducting Foreign

question 18

Multiple Choice

Which of the following is an advantage of conducting foreign operations through a branch?

• A) Foreign branch income is taxed by both the United States and the host country.
• B) Foreign branch income is taxed at a lower rate than domestic income.
• C) Foreign branch losses can offset domestic income.
• D) The parent's assets are protected from foreign branch creditors.

---

Definitions:

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used.

Capital Flight

the large-scale exodus of financial assets and capital from a country due to economic instability or unfavorable investment conditions.

Demographic Transition View

A model explaining how changes in birth and death rates can affect the age and growth dynamics of a population over time.

Opportunity Costs

The value of the next best alternative that is foregone when a decision is made.