To Encourage Inward FDI,it Is Increasingly Common for Governments to

question 80

Multiple Choice

To encourage inward FDI,it is increasingly common for governments to

• A)offer tax concessions to foreign firms that invest in their countries.
• B)exclude foreign companies from specific industries.
• C)require that local investors own a significant proportion of the equity in a joint venture.
• D)impose high custom duties on foreign firms.
• E)prohibit MNEs from joining a cartel.

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Definitions:

Conservative Agenda

A political ideology focusing on maintaining traditional values, limited government, and free market principles.

Ronald Reagan

The 40th President of the United States (1981-1989), known for his conservative policies and role in ending the Cold War.

Tax Reform Act

Legislation aimed at altering tax policies, often seeking to adjust rates, broaden the tax base, or simplify the tax code. Specific acts by this name have been enacted in various years in different countries.

Tax Shelters

Financial arrangements made to minimize or avoid taxes through legal means.