As Per the U

question 90

Multiple Choice

As per the U.S.law and OECD convention,which of the following will most likely to be considered as a grease payment?

• A) Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country.
• B) Gold Fire Inc. made a small payment of $20 to speed up some paper work related to tax returns in a less developed country.
• C) The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution.
• D) Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product.
• E) Gold Fire. Inc made an unrecorded payment to one of its accountants in return for window dressing the company's accounts.

---

Definitions:

Automobile Factory

A manufacturing facility dedicated to producing automobiles, encompassing assembly lines and machinery specific to vehicle production.

Foreign Direct Investment

A company or individual from one country investing in another country by either setting up business operations or buying business assets there.

Foreign Portfolio Investment

Investment in a country's securities, such as stocks and bonds, by non-resident investors, not aiming for control but rather intended for financial return.

Net Capital Outflow

The difference between the domestic purchase of foreign assets and the foreign purchase of domestic assets over a given period, reflecting the flow of capital from and into a country.