Income Repatriation Laws Affect MNEs That Earn Profits in Foreign

question 52

Multiple Choice

Income repatriation laws affect MNEs that earn profits in foreign countries by ________.

• A) enforcing strict stipulations on cross-border transactions and joint ventures
• B) limiting the amount of net income or dividends that can be transferred to the home-country headquarters
• C) restricting the amount of earned income being reinvested in the foreign facility
• D) imposing restrictions on the distribution of products from the foreign facility

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Definitions:

Cost of Goods Available

The total inventory cost of goods that a company has available for sale at the beginning of an accounting period, including purchases made during the period.

Net Purchases

Net purchases are the total purchases made by a business after subtracting any returns, allowances, and discounts from the gross purchases.

Freight-In

The cost associated with the transportation of goods from the supplier to the buyer, typically added to the cost of purchases.

Net Sales Revenue

The total revenue from sales of goods or services after deducting returns, allowances, and discounts.