Tax breaks on profits earned abroad and political pressures are used by ________.

Question

Quizplus · Accepted Answer

Tax breaks on profits earned abroad and political pressures are typically used by home countries to encourage their firms to engage in foreign direct investment (FDI) and expand their global market presence. By providing tax incentives on profits earned abroad, home countries seek to encourage their domestic firms to invest in foreign markets and create jobs, while also boosting exports and strengthening their competitiveness in the global economy. Political pressures, such as diplomatic negotiations or trade agreements, may also be used by home countries to encourage FDI and gain access to foreign markets. Host countries, on the other hand, may use tax breaks and other incentives to attract FDI and promote economic growth, while also enforcing regulations and restrictions to protect domestic interests and limit the negative impacts of foreign investment.

Tax Breaks on Profits Earned Abroad and Political Pressures Are