The negative implications for the operation of a foreign-based subsidiary due to joint venture laws and restrictions can result in ________.
A) high degree of leverage
B) deficit in balance-of-payment position for the home country
C) difficulties obtaining the remission of profits
D) manipulation of tax rules

Question

Quizplus · Accepted Answer

Joint venture laws and restrictions may make it difficult for the subsidiary to obtain remission of profits, which can lead to financial difficulties for the subsidiary and its parent company. This can have negative implications for the operation of a foreign-based subsidiary.

The Negative Implications for the Operation of a Foreign-Based Subsidiary