Which of the following is a home-country policy aimed at limiting outward FDI flow?
A) Taxing domestic companies' foreign earnings at a higher rate than their domestic earnings
B) Implementation of government-backed insurance programs to cover major types of foreign investment risk
C) Eliminating double taxation of foreign income
D) Persuading host countries to relax their restrictions on inbound FDI

Question

Quizplus · Accepted Answer

Countries have occasionally manipulated tax rules to try to encourage their firms to invest at home. The objective behind such policies is to create jobs at home rather than in other nations.

Which of the Following Is a Home-Country Policy Aimed at Limiting