Which of these do home-country governments NOT use to promote outbound foreign direct investment?
A) Offering tax breaks on profits earned abroad.
B) Granting loans to firms wishing to increase their investments abroad.
C) Establishing ownership restrictions on investments abroad.
D) Offering insurance to cover the risks of investments abroad.

Question

Quizplus · Accepted Answer

Home-country governments do not use ownership restrictions to promote outbound foreign direct investment. Instead, they usually offer tax breaks, loans, and insurance to support firms' investments abroad. Restrictions on ownership tend to discourage investment, so they are not typically employed by governments seeking to promote overseas investment.

Which of These Do Home-Country Governments NOT Use to Promote