Tax-haven subsidiaries categorically referred to as International Offshore Financial Centers have all of the following characteristics EXCEPT ________.
A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
B) a stable currency to permit easy conversion of funds into and out of the local currency. This requirement can be met by permitting and facilitating the use of Eurocurrencies.
C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
D) All of these answer choices are characteristics of tax-haven subsidiaries.
Correct Answer:
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