Which of These Do Home-Country Governments NOT Use to Promote

question 144

Multiple Choice

Which of these do home-country governments NOT use to promote outbound foreign direct investment?

• A) Offering tax breaks on profits earned abroad.
• B) Granting loans to firms wishing to increase their investments abroad.
• C) Establishing ownership restrictions on investments abroad.
• D) Offering insurance to cover the risks of investments abroad.

---

Definitions:

Social Security

A government program that provides financial assistance to individuals who are retired, disabled, or in other specific circumstances, ensuring their economic security.

Externalities Criteria

Standards used to evaluate the unintended consequences of economic activities on third parties not directly involved in the transaction.

Social Institutions

Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

Global Economy

The interconnected worldwide economic activities that determine the production, distribution, and consumption of goods and services.