Which of the following is used by home-country governments to promote outbound foreign direct investment?
A) political pressure
B) performance demands
C) ownership restrictions
D) sanctions

Question

Quizplus · Accepted Answer

Home-country governments often provide political pressure on firms to expand their overseas investments as a means of promoting outbound foreign direct investment. This can be through the provision of financial incentives or tax breaks, or through other means such as diplomatic efforts to open up new foreign markets for investors. Performance demands and ownership restrictions are more likely to be used by host-country governments to regulate or restrict foreign investment within their borders, while sanctions are typically used in response to perceived violations of international law or norms.

Which of the Following Is Used by Home-Country Governments to Promote