The blockage of global funds transfers is a fact of life that MNEs must manage. The reasons governments block funds include all except which of the following statements?
A) To manage the country's foreign exchange reserves and currency's value.
B) To stimulate local investment and increase capital availability.
C) To encourage imports.
D) To increase an MNE's commitment to the local economy.
E) None of the statements above; all are reasons countries block funds.

Question

Quizplus · Accepted Answer

Governments typically block funds to manage their foreign exchange reserves, stimulate local investment, and increase an MNE's commitment to the local economy, not to encourage imports. Encouraging imports would generally involve making funds more available for international transactions, not blocking them.

The Blockage of Global Funds Transfers Is a Fact of Life