When an American Company Earns Profits in a Foreign Country

question 51

True/False

When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.

---

Definitions:

1930s

The decade from 1930 to 1939, characterized by the Great Depression worldwide, economic hardship, and in some places, political instability.

1940s

A decade in the 20th century that experienced significant global events, including World War II and the beginning of the Cold War.

AFL

The American Federation of Labor, a national federation of labor unions in the United States founded in 1886, focused on skilled workers.

Craft Unions

Labor unions that organize workers in specific trades or crafts to negotiate wages, working conditions, and other employment terms.