Which of the Following Is a Home-Country Policy Aimed at Limiting

question 63

Multiple Choice

Which of the following is a home-country policy aimed at limiting outward FDI flow?

• A) Taxing domestic companies' foreign earnings at a higher rate than their domestic earnings
• B) Implementation of government-backed insurance programs to cover major types of foreign investment risk
• C) Eliminating double taxation of foreign income
• D) Persuading host countries to relax their restrictions on inbound FDI

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Definitions:

Bundle

A combination of goods or services that are sold together as a single package.

Constants

Values that do not change in mathematical equations or scientific experiments, serving as fixed references.

Indifference Curves

Graphical representations in economics that show combinations of two goods between which a consumer is indifferent, reflecting preferences and utility.

Bundle

In economics, a combination or collection of goods and services considered as a single entity for the purpose of analysis or transaction.