When a country provides tax breaks and low-interest loans, it is using which of these to encourage inflows of foreign direct investment?

Question

Quizplus · Accepted Answer

Tax breaks and low-interest loans are examples of financial incentives, which are used to encourage foreign direct investment. Sanctions (B) refer to punitive measures taken against a country, not incentives; infrastructure improvements (C) refer to investments made in a country's infrastructure to support economic development, but do not specifically encourage foreign direct investment; performance demands (D) refer to requirements placed on companies receiving investment, rather than incentives provided to attract investment.

When a Country Provides Tax Breaks and Low-Interest Loans, It