If the parent's government imposes a ____ tax rate on funds remitted from a foreign subsidiary, a project is less likely to be feasible from the ____ point of view.

Question

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If the parent's government imposes a high tax rate on funds remitted from a foreign subsidiary, the parent company is less likely to find the project feasible. This is because it will reduce the net return on investment for the parent. On the other hand, a high tax rate on the subsidiary's end would not affect the feasibility of the project from the parent company's perspective. A low tax rate on the parent's end would make the project more feasible. Option D (A and C) is incorrect as a low tax rate on the parent's end would make the project more feasible.

If the Parent's Government Imposes a ____ Tax Rate on Funds