An MNC Considers Direct Foreign Investment in Germany

question 34

Multiple Choice

An MNC considers direct foreign investment in Germany. It is mainly concerned with the subsidiary's ability to generate sufficient sales there. The country risk characteristic that would best address this concern is:​

• A)the host government's tax rates charged on remitted earnings.
• B)the possibility of blocked funds.
• C)the state of the economy in Germany.
• D)the possibility of a withholding tax imposed by the German government.

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining financial stability.

Required to Join

This term seems vague without context and might not be a defined economic or general key term without additional information; thus, clarification is needed.

Thrift Institution

A financial organization that primarily accepts savings deposits and provides mortgage and loan services.

Commercial Bank

A financial institution that provides various services, including accepting deposits, lending money, and offering investment products to individuals and businesses.