Which of These Can a Host Country Use to Restrict

question 158

Multiple Choice

Which of these can a host country use to restrict incoming foreign direct investment?

• A) Differential tax rates
• B) Insurance
• C) Low-interest loans
• D) Performance demands

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Definitions:

U.S. GAAP

Generally Accepted Accounting Principles in the United States, which are a set of rules and standards for financial reporting.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the interest payments due on any type of debt, including loans, bonds, and lines of credit.

Convertible Bonds

Convertible bonds are fixed-income securities that the holder can convert into a specified number of shares of the issuing company, usually at a pre-determined time.

Basic EPS

A measure of a company's profitability, calculated as net income divided by the number of outstanding shares of common stock; stands for Basic Earnings Per Share.