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:

Performing

The act of fulfilling a command, duty, or role as required or agreed.

Commercially Impracticable

This term refers to situations where fulfilling a contractual obligation has become excessively burdensome or impossible due to unforeseen events, making performance “commercially impracticable.”

Foreseeable

The quality of being able to predict or anticipate an event as likely to happen based on available information.

Performing

The act of carrying out or accomplishing tasks, actions, or performances as required or expected.