General Motors operates in many different countries and pays taxes at many different rates. However, they always pay the same rate as their local competitors. General Motors is operating in an environment of ________ tax policy.
A) domestic neutrality
B) foreign neutrality
C) territorial approach
D) none of the above

Question

Quizplus · Accepted Answer

Foreign neutrality refers to a tax policy where a company pays the same tax rate as its local competitors in each foreign country it operates in.

General Motors Operates in Many Different Countries and Pays Taxes