To encourage inward FDI,it is increasingly common for governments to:
A) offer tax concessions to firms that invest in their countries.
B) exclude foreign companies from specific industries.
C) require that local investors own significant proportion of the equity in a joint venture.
D) impose high custom duties on foreign firms.
E) prohibit MNEs from joining a cartel.

Question

Quizplus · Accepted Answer

Offering tax concessions to firms that invest in their countries is a common government policy to encourage inward foreign direct investment (FDI). This can make the destination country more attractive to foreign investors as they are able to save on taxes, hence increasing the chances of such investment.

To Encourage Inward FDI,it Is Increasingly Common for Governments To